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This is absolutely not my experience at all. Books that don’t balance to the cent suggest a problem that needs to be resolved. Electronic books that don’t bala
by doctor_eval 4y ago
This is absolutely not my experience at all. Books that don’t balance to the cent suggest a problem that needs to be resolved.
Electronic books that don’t balance to the cent are defective.
I’ve certainly seen lax accounting and reconciliation practices in businesses such as those you describe but it’s absolutely not been the norm in my experience.
- nulbyte 4y agoI agree, mostly. You have to understand the implications of a few cents' difference. One cent (or even one dollar) could be the effect of rounding. Or it could be a single typo. Or it could be multiple errors involving larger transactions with opposite signs.
- rco8786 4y ago> Books that don’t balance to the cent Individual books, yes (though I am still very dubious of the value in doing this given the guarantees that modern computers/databases offer). I'm talking specifically about cross-department reconciliation where different departments are keeping their own books and have their own data pipelines/etc. They absolutely still have to be reconciled, but there is no expectation of an exact match from the SEC or internal/external auditors.