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Balance Sheet Integrity

What is Balance Sheet Integrity?

Balance Sheet Integrity refers to maintenance and validation of account balances on a company’s balance sheet in their financial statements. During the financial close period, accounting staff is tasked with verifying the accuracy or integrity of all account balances in the company’s general ledger of accounts and preparing the balance sheet as part of a company’s financial reports.

What is the Process for Ensuring Balance Sheet Integrity?

At the end of each financial period, accountants go through each account on a company’s general ledger of accounts to verify that the balance listed on this record is correct and accurate. This involves comparing the general ledger account balances with other sources of this data, such as a bank statement. This process is known as account reconciliation, and is the method used to ensure balance sheet integrity.

How Does Balance Sheet Integrity Software Work?

Account reconciliation software is used to ensure balance sheet integrity. This software imports data from all sources of financial data such as ERP systems, bank statements or files, credit card processors and merchant services, etc. It then compares account balances between these sources, and identifies any discrepancies so that they can be investigated by the accounting staff.

Balance Sheet Integrity Software Features include:

  • Automated review and approval workflows
  • Reconciliation templates and checklists
  • Integrated storage of supporting documentation
  • Link to applicable policies and procedures for easy reference

What Solutions Does BlackLine Offer for Balance Sheet Integrity?

The BlackLine Account Reconciliations product is designed to streamline all aspects of the account reconciliation process. It adds both proper controls and automation to the process of verifying general ledger account balances, to ensure the integrity of a company’s balance sheet.

Within this product, configurable validation rules allow for auto-certification of low-risk accounts. This significantly reduces the workload of the accounting staff. To ensure uniformity during this process, customizable templates, checklists, and integrated storage for supporting documentation are included to implement best practices across the organization. Also, centralized dashboards and automated workflows provide full visibility into the status of the balance sheet integrity verification process.

The BlackLine Transaction Matching product further automates processes by enabling comparisons and validation of transaction-level account data. This allows accountants to view the exact transactions that are not matching in various systems and statements, and take appropriate action to correct these discrepancies.

Lastly, the BlackLine Variance Analysis product monitors fluctuations in account balances. Alert thresholds can be configured based on the risk level of the account.

These products work together to provide a complete balance sheet integrity solution.