Automated Financial Spreading
The process of mapping a chart of accounts to facilitate financial spreading is a critical step for businesses to ensure financial data is organized clearly and consistently.
This process begins with understanding the structure of the business’s existing chart of accounts – a list of all account titles and numbers used by a company to classify its financial transactions.
Standard Mapping Framework
The next step is to identify a standard framework to which the chart of accounts will be mapped. This could be a framework used within the industry or one mandated by a regulatory body. Your Boss Insights platform is configured with a default standard mapping framework.
Map any Account to Your Standard Framework
Once this is clarified, it’s time to initiate the mapping process. Each account from the company’s chart of accounts is mapped to the corresponding category in the standard framework.
For instance, an account titled “Office Supplies Expense” in the company’s chart of accounts might be mapped to “Operating Expenses” in the standard framework.
Consistent and Accurate
During the mapping process, it’s important to maintain consistency and accuracy to ensure reliable financial spreading. The mapped chart of accounts is then used to spread financial statements, allowing for more effective financial analysis and decision-making.
Review and Update
Finally, it’s crucial to regularly review and update the mapping, especially when there are changes in the company’s operations, the standard framework, or regulatory requirements. This ensures the mapped chart of accounts continues to provide a true and fair view of the company’s financial position. Boss Insights can be configured to automatically map new accounts or trigger notifications for manual review.
Please visit our Business Financial Excel Template documentation for tutorials and more details.