Hello Manager Users,
I hope you all are doing well. I’ve been using manager software for 2 years. Now, I want to audit the software to check if all transactions, profit, liabilities, and cash are okay. Actually, I want to audit my account. So, how can I start, and what steps should I follow?
Regards-
Hi @mamun,
You can create a test business and create test transactions.
You can follow the guides for help:
What exactly are you trying to audit?
You could use the General Ledger Transactions report to analyse the accounting entries
But I do not understand what you are hoping to achieve
@mamun ,
I think that you are referring to making sure all transactions are entered correctly and entered exactly once (no duplicates and no missing transactions).
Traditionally, certain totals (or net balances) are compared, and if they match, everything is assumed to be correct. If they differ, you need to find which transactions are duplicates, missing, or simply incorrect. I think that is what you are talking about. I italicized assumed because it is certainly possible for multiple errors to cancel out so that the totals match, but the profit and loss statement, balance sheet, and other statements are incorrect.
There are certain totals that you know have to match. The bank’s balance must match the balance you have in Manager for the bank account. If not, something is wrong somewhere. It could be the bank’s mistake or our mistake.
Even if you use the Import Bank Statement feature to enter bank transactions, it is possible that the balances won’t match. (1) I have seen that Import Bank Statement does not work for all banks. (2) If you enter some transactions, the Import Bank Statement might not catch that you already entered a transaction.
Another pair of balances that must match are inter-business transactions. The inter-business transactions are when you have one Manager Accounting books for one business and another Manager Accounting books for another business. It can also be when you use Manager for your personal accounting (personal income and expense) and own a business. It happens that business A paid for business B’s expense. In such a case, the expense must affect business B’s profit and loss statement but must show in A’s bank account transactions without affecting A’s profit and loss. So, there will be an inter-business account on A’s books and on B’s books. The balance must be equal but opposite. For example, if A’s inter-business balance is a credit of $50,000, B’s balance must be a debit of $50,000.
What I have done to find the discrepancies is download from the bank a CSV file of all the transactions and load it into an Excel spreadsheet. Then, I use the “Copy to clipboard” button to get the transactions from Manager. Then, I use Excel’s Power Query to manipulate the two datasets so they can be compared, and then I compare them.
I hope that within a few months, there will be reconciler software for Manager Accounting that will make this much easier. But in the meantime, we have (1) Manager’s built-in “Bank Reconciliations” (enable it in “Customize”) to guide us in working statement by statement and (2) Excel or maybe other spreadsheets.
Some banks do not let you download as many as 2 years of transactions, while others do. So, you might not be able to download enough transactions to use Excel to find discrepancies. But I would expect you have the bank statements or can get the bank statements for 24 months.
One thing is for sure: if (1) the starting balance in Manager matches the Bank’s starting balance, (2) all the transactions match one for one, and (3) the ending balances match, then the Manager books are correct, although there is still room for an incorrect income or expense account to be credited or debited.
I apologize if I misunderstood the question. As detailed as this answer may seem, I have left out a lot due to my assumptions of what you know. And likely, I have included a lot that you don’t need again because of my assumptions about what you know. In any case, I hope this answer may be helpful.
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