How to review accounting books effectively?
Regardless of the size of the firms, reviewing the accounting books is often considered a tedious task for accounting firms. This tedium derives from the numerous accounting review points that accountants need to review carefully and fix errors if there are any.
When approached in the traditional manner, this can become a very time-consuming task as well. The key to simplifying and optimizing this monotonous task, however, is the use of a reliable and powerful tool created for reviewing accounting books. In this blog, we will look at the most effective way to review your accounting books. So, without further ado, let's get started.
What does it mean to review accounting books?
Reviewing the accounting books is the task of thoroughly scrutinizing the books before the end of the fiscal year or period to ensure their accuracy and uniformity. In general, accountants meticulously review financial data for errors or omissions. Accountants review accounting records based on a variety of criteria. To delve deeper, depending on the size of the firm, reviewing the accounting books may comprise the following sub-tasks.
- Reviewing the general ledger, journal entries, and supporting work paperwork to confirm that all financial transactions are recorded correctly.
- Verifying that the financial statements are generated clearly and concisely.
- Identifying potential risks or areas of concern, such as unusual transactions or accounting errors.
As a result, accountants may find this process difficult and time-consuming. Nonetheless, it is necessary to verify that the books are closed correctly. Accountants need a reliable solution to tackle this. Accounting experts highly recommend Xenett due to its exceptional error-detection ability.
How to review books effectively using Xenett?
While reviewing the books, Xenett performs over 50 AI-based checks and detects errors that might have gone unnoticed. This eliminates the manual effort of looking for errors in the books, saving hundreds of hours. Let’s have a look at the step-by-step guide provided for reviewing books using Xenett.
Step 1: Log in to your account, select the client, and click on the clean-up
This is how the clean-up mode screen looks.
Step 2: Select the range for review
Select the range of months you want to review the books for. You can select one month or multiple months; it is all up to you. Then, it will load the screen where you will get all the errors to fix.
Step 3: Start fixing the errors
There can be many errors, such as uncategorized transactions, entries without names, entries without locations, etc. You can open and edit transactions if needed. This way, you can fix all the errors in the books.
Step 4: Ask questions to clients and get feedback
If you have no idea what the given transactions are for or have any general queries, you can select the list of transactions and ask questions. The selected list of questions will be published in the client portal, where the client can give feedback.
By following this method, you can quickly correct errors and prepare your books for month-end or year-end close with a high level of precision. XenettGo is an added advantage of choosing Xenett for book reviews. This Chrome browser extension effortlessly works inside your QuickBooks and Xero accounts. XenettGo helps you detect errors in your QuickBooks and Xero accounts, eliminating the need for frequent Xenett app logins. Moreover, you don’t need to switch between multiple spreadsheets as you can attach workpapers in Xenett easily.
The bottom line
It is essential to review your accounting books on a regular basis to ensure correctness and compliance. The guide in this blog provides the best way to review accounting books effectively. You can make the review process more efficient and productive by following the best practices and using Xenett. Moreover, now, with Xenett at your fingertip, you don’t need to wait until the end of the month to review the books. You can start the review process and fix the errors whenever you want to if you want to know more about Xenett, book a demo call now.