Reconciliation is essential to the monthly process. It is time-consuming, requires attention to detail, and sometimes daunting. At Cryptio, we want to help our customers and make this process as easy and streamlined as possible. This module is especially helpful for CFOs, Heads of Finance, and reviewers to get an instant understanding of account completeness or discrepancies. This help center article aims to provide an overview of how to utilize Cryptio’s Reconciliation module to ensure completeness and accuracy.
What is the Reconciliation module?
In its simplest form, reconciliation is an accounting process that compares two sets of records to check that figures are correct and in agreement. Reconciliation also confirms that accounts in the general ledger are consistent, accurate, and complete. To support our users in the account reconciliation process, we have developed the Reconciliation module.
Ledger view vs Reports view
The Ledger view demonstrates our in-app Trial balance.
💡Tip: You will need to have an accounting integration connected to see this module. Also, to learn more about the existing Trial balance report, check out our help center article here.
The Reports view summarises all the reports generated from this module. It helps maintain a clean user experience from the usual Report module.
Why is the Reconciliation module important to you?
At each EOM, companies need to ensure that they get the sum of debits and credits for every account of their business on an accrual basis to identify discrepancies in their account totals, produce financial statements and ensure that their accounts balances are correct for a given period of time.
The Trial Balances view serves as the perfect summary of all mapped account activity and journal entries in a given period, enabling the finance team to identify discrepancies or irregularities and to make assessments around a company’s profitability.
- to identify errors or discrepancies in the accounting process;
- make sure your accounts mapping is complete;
- make sure your accounts balance before synchronizing your transactions; and
- to fix the mapping incompleteness directly from the view.
How to use the Reconciliation module?
🚨 Note: In this section, we will refer to each box as ‘card(s)’ and number them from top to bottom order for simplicity.
- Card: Summary of transactions mapping and synchronization
- Card: CoA mapping completeness
- Card: Accounts overview
- Card: Accounts breakdown
- Card: Transactions with incomplete CoA mapping
💡 Information on the data update system:
- automatic update is launched every 6h after the page opening
- each time a new mapping is applied to the COA page, an update of the Ledger view is applied
- Users can click on the
Update Trial Balances Databutton to fetch the latest data
1. Card: Summary of transactions mapping and synchronization
- This card provides a bird's eye view of your mapping and synchronization status.
- This information is aligned with the Transactions page.
2. Card: CoA mapping completeness
- This card summarises the mapping status based on - wallets, labels, and exchanges.
- This information is aligned with the Accounting > Chart of Accounts > Needs Review page.
⚠️ We don't count the mapping that has been masked in the COA needs review, as by definition, they are mappings that users purposely want to ignore
3. Card: Accounts overview
- This card summarises accounts (expense, income, asset, liability, and equity) into debit and credit amounts.
- ⭐ Users can easily adjust the view based on a specific date range or full history. This date range applies to cards 3-5.
- This information is aligned with the Accounting > Chart of Accounts page.
💡 Benefits of the view
- Users can quickly identify discrepancies among the main standard account types, before digging into each account on the second table.
- Users can evaluate the materiality of the discrepancies, per main accounts
- The grand total provides the net balances of the overall activity
How to read this table and identify red flags?
A well-balanced account looks like this:
- asset accounts type = Debit
- expense accounts type = Debit
- income accounts type = Credit
- liability accounts type = Credit
- equity accounts type = Credit
For example, having a balanced amount on the credit side in the asset account type is a red flag. Here are some next steps that the user can go through to investigate these types of red flag
For the account type that has an unusual credit/debit side activity, review that specific account to see all activity in the period through the mapped labels. The great first step is to investigate.
A good sense check here is to compare month-over-month activity in each account. Large anomalies could indicate mislabeled activity as well.
⚠️ Note that for all the unrestricted workspaces, this structure can be broken. We will feed both the Debit and Credit sides based on what the workspace gives us. Unrestricted workspace can have asset account feeding credit side for example. Restricted workspace can’t.
To check: Navigate to Manage workspace > Are mappings restricted? or check out our help center article on how to un-restrict Chart of Account mappings.
4. Card: Accounts breakdown
- This card breaks down accounts into their underlying sub-account and helps to identify where potential discrepancies might be coming from.
- The date range is set up in Card 3.
- To read the columns:
- Code: the code number entered in the COA
- Accounts: accounts name given in the COA
- Debit: sum of all the debit final balance of each debit type account
- Credit: sum of all the credit final balance of each credit type account
5. Card: Transactions with incomplete CoA mapping
- This card syncs with the Transactions page (Needs review > Incomplete CoA) and allows users to update any outstanding account mapping-related actions.
- Similar to the Transactions page, users can:
- add/remove labels, add notes, apply US dollar rate, manually mark or automatically synchronize transactions in bulk or individually (in Batch edition drawer)
- The key goal is to clean this whole card so there are no transactions showing. To achieve this, the user needs to apply to the correct credited and debited account for the CoA mapping.
- Select a transaction and navigate to the pop-up Transaction Details drawer
- Click ‘Manual chart of accounts mapping’
- Choose the relevant ‘Credited’ or ‘Debited’ to balance the transaction mapping.
- Click Save. The transaction will disappear from the card and is ready to be synchronized with your ERP system.
- Click on
Update Trial Balances databutton and see the result of the latest changes (in cards 3 and 4)
How to generate the Trial Balances Report?
Within the Reconciliation module:
- Scroll to the top, and select the top right corner ‘Generate Trial Balances Report’.
- Navigate to the Reports view.
- The report is created, download the report from the icon under the Actions column.
Or check out our existing Trial Balances Report article for detailed instructions.
If you have further questions, our Customer Support team is always here to help.