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GL Accounts Out of Balance

  • Excessive time is spent in reconciling inter-company due to/from accounts because intercompany transactions have to be entered manually for each company. Transactions are re-keyed into multiple databases and there are errors. Sometimes, transactions are not recorded in all companies, or they get recorded incorrectly, resulting in difficulty reconciling the inter-company balances.
  • The reconciliation of bank accounts is manual. It takes too much time to reconcile a bank account.
  • You have a manual process of entering deferred revenue transactions or are using recurring entry transactions to handle the recognition of deferred revenue. Transactions are missed, not recognizing revenue when they should. You have transactions in which the receivable is recorded in one month but the revenue is recognized in a different month or months. Monthly journal entries do not recognize revenue/expense. Subsequent journal entries are not done to correctly recognize revenue/expense.
  • Time is spent re-keying budget data from spreadsheets into the GL. You cannot easily transfer information between the general ledger and Excel for creating and updating budgets. You do not have a mechanism for creating base line or blank budgets utilizing the information within the general ledger. You are not able to link back or drill down from Excel to see more detail on the GL account. This is not related to GL Out of Balance.
  • It takes increasing time to research balances and transactions. It takes too much time and costs too much to create and customize reports to research unusual balances or transactions. It is difficult to setup codes to track transaction activity by project, cost centers, employee, etc. in order to further analyze expenses. Analysis is not always available. The analysis is cumbersome or requires additional software.
  • It is difficult to reconcile control accounts with subsidiary ledgers, and the way you do it today takes too much time.
  • When analyzing data, your accounting staff could mark control accounts (i.e. AR, AP, Inventory) as “No Input Allowed” so that journal entries cannot be made manually (without special security) and control accounts could be reconciled with subsidiary ledgers.

About the Author: AJ Amjad Khanmohamed

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