Because it automatically double-checks account totals against the records that make them up (e.g., G/L account balances and their journal entries), the Auditor saves finance staff from having to print and analyze hundreds of pages of reports to find accounting problems

The complete auditing process includes checking for out-of-balance G/L entries, making sure that the A/P and A/R agings equal the Balance Sheet totals, and ensuring that billable time entries contain a client number. Each auditing step has a different function, which is described below.

Why does it happen? It happens when one side of a transaction (either a debit or credit) is posted, but the system crashes before the other side is finished. The problem can happen at any time, and it is difficult to prevent (since it is always system related). For performance reasons, Clients & Profits doesn’t automatically warn you when you’re out of balance. But it’s easy to see if your G/L is out of balance: simply look at the bottom line of the Balance Sheet(it’ll show the out of balance amount), or at Total Assets, Liabilities, and Equity section on the Trial Balance(which should always be zero).

The key to solving an out-of-balance G/L problem is to find the missing (or duplicated) journal entries. Since all JEs for a particular transaction have the same reference number, it’s easy to track down the bad entries. To make troubleshooting your G/L easy, Clients & Profits provides a special Out of Balance Checker utility.

This step points out one-sided or otherwise unbalance journal entries from the General Ledger. If your Trial Balance shows an out-of-balance total, the Out of Balance Checker will show you precisely where the problem occurs. It is the same function as the Out of Balance Checker utility in the G/L Tools menu. The only difference is that running the Out of Balance Checker by itself lets you check one period, instead of all periods.

The total amount of the entries on the report should equal the out-of-balance amount on the Balance Sheet or Trial Balance.

🔹To use the Auditor to troubleshoot your financial statements, open the General Ledger window then choose Edit > G/L Tools > Auditor.

HERE'S HOW IT WORKS

• The Auditor tool works by analyzing your G/L journal entries transaction-by-transaction.
• It adds up the total of each transaction’s debits and credits (i.e., JEs with the same reference number), then highlights the ones that don’t balance.
• The Auditor report only shows the transactions that need fixing.
• The Auditor only finds unbalanced entries that need to be corrected.
• It does not change your general ledger in any way.
• You’ll need to make your own judgments about how to correct an unbalanced entry (that is, making the appropriate debit or credit adjusting entry).
• The total debits and credits for each reference on the Auditor reports correspond to the total debits and credits in the G/L window for that transaction.

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👉 What the Auditor isn't

Don’t mistake the Auditor for a traditional accountant-based financial audit. The Auditor can only check the account totals themselves, ensuring that they add up correctly. It can’t make value judgment about how users have entered data (for example, it can point out that the wrong expense account was used). It doesn’t replace a professional accounting audit. Instead, it is only a useful tool for finding the source of accounting problems.