Financial Review

This page provides all the details related to our financial review module.

General

Our financial review module was created to dramatically speed up the process of closing your books using a combination of custom targets and connected financial data. Our results screen will give an assessment of your accounting accuracy and alert you to general ledger accounts that need to be reviewed for accuracy. The information below will illustrate how we do this.

Run Section

The 'Run' section is where you are initially directed within the financial review module, and where you set the parameters for your financial review.

The setup parameters are as follows:

• Review Parameters: In this section, you will choose the parameters that will dictate the date range and accounting method that is used as part of the financial review.

• Source Data: In this section, you will choose the source data that you would like for us to analyze:

  • QuickBooks Online

    • Access to your QuickBooks Online company is necessary to be able to perform the financial review.

  • Bank & Credit Cards: If you have connected bank and credit card accounts to Equility, then we will be able to use these connections to verify whether or not the balance showing up on QuickBooks Online matches the balance from your online banking at the end of your financial review period.

• Financial Targets: Targets can be used and created in order to monitor company specific metrics like gross margins, rent expense, and operating profit margins. If you'd like to create your own target, simply click the 'Create a Target' button and follow the instructions for formula creation. If you have any questions, you can message us in the chat window (bottom right of screen), email us at [e-mail], or schedule a call using our calendar link.

• Default Review Rules: The default rules are applied to all companies by default based on their business entity type. The following are some examples of our default rules:

  • Uncategorized Assets

    • The ‘Uncategorized Asset’ GL account is a default GL account created by QuickBooks. Often, bookkeepers and accountants use this as a clearing account that needs to be emptied before the books are closed. This check flags any transactions that are allocated to the ‘Uncategorized Asset’ GL account, so that they can be reviewed and properly allocated.

  • Uncategorized Transactions

    • Often, bookkeepers and accountants will utilize certain clearing accounts for transactions that they might need additional details on before allocating them to the proper GL account. This check asks you to choose your clearing accounts, and then it flags any transactions that are allocated to this GL account, so that they can be reviewed and properly allocated.

  • Equity Review

    • A review of your equity allocations to ensure that you're not utilizing an equity account that in not compliant with your entity type.

  • Asset Review

    • A review of your asset allocations to ensure that you’re not utilizing an asset account that is not compliant with your entity type

  • Liabilities Review

    • A review of your liability allocations to ensure that you’re not utilizing a liability account that is not compliant with your entity type

  • Depreciation & Amortization

    • Ensure that the total of the accumulated deprecation and amortization on your balance sheet during this period match the total of the depreciation and amortization expense on your income statement.

Results Section

The 'Results' section is where you get to see the financial assessment of your accounting accuracy based on the targets and rules that were created in the 'Run' section.

In this section, you will see a chart that has the following columns:

• Account

  • This is where you will find the names of the general ledger accounts that are present on your income statement and balance sheet.

• Default Rules

  • This is where you will see the summation of the number of default rules that are being ran against this general ledger account and all of its child accounts.

• Custom Rules

  • This is where you will see the summation of the number of custom rules that are being ran against this general ledger account and all of its child accounts.

• Total

  • This is where you will find the balance or summation for each of the general ledger accounts listed.

• Result

  • This is where you will whether a general ledger account and all of its child accounts had no compliance rules ran against them, or if they did, whether they passed all of these tests or if they failed one or more of them.

• Details

  • This is where you can see the detailed results of each of the rules that were ran during the financial review.

History Section

This 'History' section is where you get to see a record of all of the financial reviews that were completed in the past. The details in this section include the date of the review, the period, accuracy percentage, and who it was completed by. You can also click the 'Details' button in order to access the full financial review's results.