Reconciliation
What is Reconciliation?
Reconciliation is the process when you adjust and compare the entries between your accounting software, and BrokerWare. The best way to do this is to print your reports in both systems, compare each account. This will lead you to the invoices that are not matching between the two systems.. The best practice, is to reconcile both systems monthly. The more often you reconcile your accounts, the easier the process becomes.
How do I compare reports between Quick Books, and BrokerWare?
Always sync with QuickBooks before running your reports. This will make sure all pending activity, including invoices and standard payables will be sent over to QuickBooks.
To speed up the comparison process it is best to look at the totals at the customer or vendor level first. Then if there is a discrepancy for that customer or vendor look at the individual invoices listed.
Accounts Receivable; Print out the "Collections Report" from BrokerWare, and the "Accounts Receivable Aging Summary" report from Quick Books. Take the two lists and compare them. BrokerWare will list pending Invoices, while Quick Books has no record. This is because the Invoice has yet to be sent to QuickBooks.
Accounts Payable; Print out "AP Standard Invoice Report" from BrokerWare, and compare it to the "AP Aging Report" from Quick Books.
Accruals: In BrokerWare print out "AP Accrual Report" along with "Commission Payable Report", and compare those with the "Accrual" report from Quick Books.
What if the reports do not match?
You may find that the reports between your accounting software and BrokerWare do not always match. Here are a few of the main causes and resolutions
- Credit memos - Make a list of unposted credits
- Receivables that are written off - Make a list of unposted invoices
- Pending Invoices - Run QB Sync
What is an Accrual?
An Accrual is a pending expense used for Accrual based accounting. For example; when a load is invoiced, you are expecting to pay the sales rep a commission and the carrier for the shipment. The Payable is an accrual until you receive the bill from the carrier and mark receive payables. The commission is an accrual until it is approved for payment. The System Accrual then becomes a payable.
If you use cash based accounting system when running your Profit and Loss reports exclude the Accrued payables and Commission Payables accounts. Excluding them will provide more accurate reports.