Inside Accounting by Leung David

Author:Leung, David.
Language: eng
Format: epub
Publisher: Taylor & Francis (CAM)
Published: 2011-03-11T16:00:00+00:00

SARA: RECONCILIATION

After the creation of new worksheets, columns and formulae, Sara reconciled the workbook to the Sage gross profit and to the following Sage balance sheet items: accrued income, deferred income, cost accruals and prepayments. This took her a few days to complete as her other commitments (especially her reception work) required the reconciliation process to be broken up into a number of smaller reconciliations (that is, sales, labour costs, material costs, consumables and other costs reconciliations), which made it easier for her to pick up from where she left off, and done intermittently.

Although Sara was used to standard accounting reconciliations (for example, the bank reconciliation which reconciles a company’s internal bank records or ‘cash book’ to its bank statements, and the supplier reconciliation which reconciles a company’s internal supplier records or ‘purchase ledger accounts’ to its suppliers’ statements) and reconciling her spreadsheet schedules to the respective Sage balances every month, she still found the new reconciliation puzzling at first. As the workbook was entirely designed by me, the workbook reconciliation was not a ‘standard’ accounting reconciliation. The reconciliation was completely new and unfamiliar to her. Although she knew the purpose of reconciling one piece of information to another piece of information (that is, to check for accounting errors and to ensure all the differences were accounted for), she was overwhelmed by the amount of new information that she had to understand, so much so that whenever she found a difference between the Sage printouts and the workbook, she would constantly ask me ‘where do I stick it?’ or ‘what do I do with it?’.

Even when she was more familiar with the reconciliation, she still found it difficult to understand why the formulae worked. For example, it was her third time doing the reconciliations (three months after I initially showed her the reconciliation)50 before she understood the formulae that calculated the amounts for her Sage journals, that is, the deferred income, accrued income, cost accrual and prepayment values for the month and the one function of the workbook that most affected her.

Download

Copyright Disclaimer:
This site does not store any files on its server. We only index and link to content provided by other sites. Please contact the content providers to delete copyright contents if any and email us, we'll remove relevant links or contents immediately.