Companies must ensure that anything included in a balance sheet can be adequately and reasonably supported and any differences can be explained. By definition, everything included in a balance sheet will remain with the Company and impact it’s financial position until released.
At Pageline we can work with you to help with existing balance sheet reconciliations, ensuring they are appropriately corroborated, and differences explained.
We can also help you develop or improve a process for preparing balance sheet reconciliations accurately, and effectively, automating the process where appropriate.
All balance sheet nominals will be corroborated by external sources if possible and any variances will be explained as part of the process. We can help develop a RAG (Red Amber Green) system, where all variances will be noted as Red, Amber or Green as follows:
Green variance - an explainable or non - material difference,
Amber variance - Cannot be explained but variance is not material or no urgent action is required
Red variance - Cannot be explained and variance is material or urgent action is required.
This will encourage businesses to act rapidly to clean balance sheets.