Double Entry Bookkeeping

Typical of the double entry bookkeeping system used is that for every debit, there must be an equal and corresponding credit. Crediting a client’s trust ledger with a receipt must have a corresponding debit entry in the cash book. The sum of the debits and credits must be nil. Confirming that transactions appear on the correct ledger as expected and that the debits and credits are posted as expected is a basic requirement for verifying the transactional integrity of the books.

Fortunately, DynamicLTA has several standard reports that can be used as control documents to verify the integrity of the system.

The various levels of reports make the entire process transparent. Ready verification and instant reporting allows for easy detection of problems.

Control Reports

Financial Statements, Management Reports and Control Reports

Financial Statements

Financial Statements are designed to give a high level overview of the financial affairs of a business. Reporting periods are for longer time frames, such as a year or quarter.

Management Reports

Management Reports are often a lot more flexible than formal Financial Reports, and can provide a level of analysis which Financial Statements do not provide. Management Reports are designed to give management an instant view into the current affairs of the business and can have flexible time frames, including current day, week, or month.

Control Reports

Control Reports are a variation on Management Reports. The difference lies with the audience the report is intended for. Management Reports are aimed at making business wide decisions, affecting time and resource allocation. Control Reports are aimed at the system end-user, to ensure that the day-to-day operations are accurate and verifies processing of transactions.

 

To confirm that a transaction was posted to the correct ledger

Use the REPORTS > LEDGER HISTORY DISPLAY or LEDGER HISTORY ANALYSIS. This gives a detail breakdown of all the transactions for that account.

 

LEDGER HISTORY DISPLAY

This can be viewed for a specific time frame, with opening and closing balances, with business and trust columns.

A four column report.

 

LEDGER HISTORY ANALYSIS

This analysis shows all transactions with business and trust with balances.

A six column report.

To confirm that all the debits match all the credits

Use the Diagnostic Reports under the PROCESSING menu.

 

DIAGNOSTIC: TRANSACTION SUMMARY

Provides a summary by transaction type, listing corresponding debits and credits. A problem will indicate a transaction type, such as Trust Receipts where total debits do not match credits.

DIAGNOSTIC: TRANSACTION DETAIL

Breakdown my transaction type, such as Trust Receipts will show details of those transactions. This will show all the transactions of the selected type.

-Dynamic