Adjusting balances
Correct errors, reconcile transactions, and ensure accurate financial records in your application.
When reconciling your transaction records and identifying omissions or mistakes in how some transactions were recorded, you need to adjust your ledger balances to reflect the correct position and compute the correct balance.
Doing this right will ensure that your books are always balanced and correct.
In this guide, you’ll learn how to use Blnk to fix any errors or mistakes in your ledger.
1. Identify the error or omission
There can be many reasons why your transaction records may not be perfectly reconciled, here are a few:
- Omissions: Some transactions are recorded in your account statement but not in your ledger, such as fees.
- Timing differences: Transactions are recorded in your account statement and ledger but at different time periods.
- Errors: The wrong amount is recorded in your ledger, differing from the account statement.
When identifying errors, it’s advisable to do this with an accounting or reconciliation officer.
2. Find why the error occurred
When you find the error, determine why it occurred. Understanding the cause will help you fix it or prevent it in the future. Usually, it’ll lead you to review your money movement map to ensure all amounts are moved appropriately.
If the reason is unavoidable, move to the next step.
3. Adjust the affected ledger balances to reflect the right records.
When you find the error and you know what to do OR if the reason is unavoidable, you can adjust the ledger balances to fix the misalignment.
For instance, if you reconcile a ledger balance and discover that there is more money in the balance than is available in your account statement, it may be as a result of fees not being deducted from the ledger balance.
To fix this, determine how many times the fees were not deducted, and post transactions to a “@Fees” ledger balance to appropriately debit and reconcile the ledger balance. You can also update your map to ensure that fees are debited every time the balance receives funds to avoid reconciliation errors in the future.
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