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 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 financial data from sources such as ERP systems, bank statements or files, credit card processors and merchant services. It then compares account balances between these sources, and identifies any discrepancies so that they can be investigated by the accounting staff.
- Reconciliation templates and checklists
- Automated review and approval workflows
- Integrated storage of supporting documentation
- Link to applicable policies and procedures for easy reference
Balance Sheet Integrity with BlackLine
BlackLine’s new Balance Sheet Integrity solution improves the accuracy of your financial statements while eliminating error and risk. It underpins your balance sheet reconciliation process with fully auditable automation, and builds trust by ensuring every reconciliation is thorough, accurate, and on time.
The solution is designed to standardize and automate any type of manual reconciliation so you can cut out those costly, tedious processes. With monitoring and verification streamlined on the schedule of your choosing, you can match multiple transaction data sources and address exceptions in real time.
By enabling F&A teams to focus on value-added activities, Balance Sheet Integrity helps organizations achieve a key milestone on the journey to Modern Finance, providing transparency into accounting performance and operations and moving beyond manual, error-prone processes.