If you are using an accrual accounting method, follow these simple steps each month to confirm your key balances are ok.

Step 1. Print the General Ledger Trial Balance using the last day of month once all activity for the month has been entered.

Step 2. Print the Aged Receivables Report often also referred to as the Receivable Aging
The Accounts Receivable general ledger account balance found on the General Ledger Trial Balance should = the total amount due found on the last page of the Aged Receivables Report

Step 3. Print the Aged Payables Report often also referred to as the Payables Aging
The Accounts Payable general ledger account balance found on the General Ledger Trial Balance should = the total amount due found on the last page of the Aged Payables Report

Step 4. Print the last page of the inventory valuation report. This report shows quantity for each item, unit cost and value.
The Inventory general ledger account balance found in the General Ledger Trial Balance should = the total inventory valuation amount found on the last page of the Inventory Validation Report

Step 5. If your company calendar year is January to December then print the year to date payroll earnings report.
The Payroll Amounts for Salary and Wages Accounts found on the General Ledger Trial Balance should = The total YTD Gross on the Yearly Earnings Report
*if your company is not on a calendar year this step should be skipped

Step 6. Perform your monthly bank reconciliation
The Cash Accounts general ledger balances found on the General Ledger Trial Balance should = your manual check book balance and should also agree to the reconciled checkbook balance once the bank reconciliation has been completed.

If you find discrepancies on any of these steps it might be time to speak with your CPA, bookkeeper or find a local consultant who can help you understand if your information is correct. We recommend using Peachtree Software. It is easy to setup, easy to use and easy to correct mistakes.