Dear Clients,

I’m often encouraging—nay, entreating!—clients to validate their Balance Sheet to find the inevitable errors in processes and configuration so your financial statements will be correct and you can make accurately informed decisions, because if your Balance Sheet is completely validated then the bottom line of your Income Statement is guaranteedly correct—which has direct consequences for corporate taxes owed!

I’ve worked personally with numerous clients on this, but never detailed the process in our NewsLine, so here goes! It’s simply a matter of creating a spreadsheet that lists all accounts on your Balance Sheet, their values in GL, their values from the validating reports and then a column calculating any variance—usually updated at the end of every month, but it can be done anytime.

What does that look like? Like the example below, which has been simplified to exclude payroll:

Values for the blue Column B, labeled “GL”, come straight from the Balance Sheet, and can even be pulled dynamically via F9 for AccountMate or Velixo for Acumatica.

Values for the green Column C, labeled “Validating”, take a little bit of work as you need to run the respective “Validating Reports” listed in the last column and manually enter them. Reference our Period End Closing Outlines list of reports, and here’s notes on some of those:

  • Cash: Don’t have the Bank Reconciliation module? Use your bank statement, add in outstanding checks, and subtract floating deposits.
  • Accounts Receivable: Some clients include customer open credits in the AR asset, while others have them in a separate “Customer Deposits” liability—be sure to run your report including/excluding open credits as appropriate.
  • Inventory: Have more than one inventory account? Then run the Warehouse Quantity Listing sorted by “GL Account ID”.
  • New Equipment Purchased: As capital equipment is purchased through the year, book the purchase to a “holding account” in the assets section. Then at the end of the year, print the General Ledger Listing and have your CPA review each purchase to then categorize it and apply the appropriate depreciation method.
  • Fixed Assets and Accumulated Depreciation: These don’t typically change during the year, but you should have a list from your CPA to ensure items are removed as they’re retired or scrapped.
  • Aged Payables: If you have open prepayments be sure to sort the report by “AP Account ID”.

Values for the yellow Column D, labeled “Variance”, are automatically calculated as “Column C minus Column B” for assets, but “Column B minus Column C” for liabilities. Thus, it always shows positive numbers for debits and negative numbers for credits for creating the correcting journal entry. The bottom of this column is the sum of all rows abovewhich is the amount to book to a variance account on the Income Statement.

Variance, you say? But there shouldn’t be any stinking variance! I agree, but human error is inevitable and if you haven’t validated the Balance Sheet in quite a while there may be erroneous entries or misconfigurations of the system which cause discrepancies. Then it’s a game of finding the needles in the haystack—which can be TEDIOUS if you haven’t validated in a while… If that’s the case, then the best path is usually to make a journal entry to jerk the Balance Sheet into agreement with the validating reports and then “draw a line in the sand” to know there’s no errors prior to that dateand when you do the validation later there will be many  fewer transactions to look through.

It’s a good idea to use <Posting Period Restrictions> to keep only a small window of months open, and thus prevent accidentally posting to prior or future periods. Also, it’s a good idea to avoid “as of” reports as they can include/exclude transactions you might not want included/excluded. Of course you’ll want to generate the Balance Sheet and all validating reports at the same time, ideally at the physical month end.

I know it’s a hassle to do this every month, but the longer it’s put off the more difficult the task is. And if you don’t validate the Balance Sheet then you can’t really be sure the financials are correct.

Hopefully this overview helped, and we’re always standing by for further assistance to get your system screwed down tight.


Kevin E. Stroud

New Ebook to Help Your Company Create a Plan to Be Acquired or Go Public

While it’s rare that one of our clients is planning to go public, we regularly get asked questions by clients who want to position their companies to get purchased. This new playbook on planning to go public caught our eye, because preparing to be acquired involves a similar mentality as preparing to go public.

You want to make your company attractive to potential buyers, so that you can get the best offers while ensuring that your company, employees, and customers will be placed in good hands. When a potential buyer is doing their due diligence, they usually want to see a well-run company that’s poised for new growth and is simply waiting for the investment and expertise that can help accelerate that growth. They’re not looking for an existing system that will be expensive to clean up or modernize.

On the financial and operational side, you can demonstrate the value of your company to a potential buyer with things such as:

  • Strong financial and operational controls, including cash flow management
  • Financial transparency and robust, consolidated reporting (as opposed to data silos, manual processes, and areas that aren’t actively managed)
  • Streamlined workflows with scalability and security
  • Documented procedures with a quality management program

A new strategic-level 10-page ebook from Acumatica, Empower IPO (and Acquisition!) Success Through Preparation and Technology, gives you a framework to help you build a plan of action to get the maximum value for your company when you sell. Then you can start chipping away at the list of improvements now, adding to the appeal of your company to your future owner later.

View or download the PDF, Empower IPO (And Acquisition!) Success Through Preparation and Technology.

If you have questions about how your system could best support new integrations, workflows, and processes—you know you can always shoot us an email, or call.

PS. Not planning to go public, AND not planning to sell your company? No problem. These ideas can still help strengthen your company, demonstrate your value to bankers and future investors, and put you in a position to scale more efficiently. So take a look.

FMIS Fixed Assets Management System for AccountMate

Does your company need to calculate and forecast depreciation for fixed assets such as equipment and machinery? FMIS Fixed Assets is a powerful and easy-to-use add-on for fixed asset accounting for AccountMate users. It has the flexibility to handle complex asset information in any industry, across multiple companies, countries, and books.

It’s part of the FMIS asset management suite that includes tracking, maintenance (CMMS), and asset accounting. Designed for accounting professionals, the Fixed Assets module automates fixed asset accounting calculations, including depreciation and amortization for regulatory and tax purposes, and the module is highly customizable if needed.

Using FMIS provides benefits such as:

  • Viewing of the location, status, and full history of any asset in any location
  • Fast and efficient physical audits of assets and inventory
  • User-defined dashboards to easily access all key data and actions
  • Real-time updates to your asset register via a handheld scanner
  • Minimized write-offs as a result of physical audits
  • Track locations and asset movements across any number of sites and companies
  • Attach files such as photos, purchase orders, warranty documents, service history, or invoices
  • Import/export data directly from spreadsheets to save time
  • Lower insurance premiums through the use of specialized software

FMIS is a new AccountMate partner, compatible with SQL and SQL/Express V11 and above. NexLAN’s taken a good look at the product and we’re impressed, so if you’d like more info:check out the FMIS website or watch the 25-min recorded demo or, of course,  reach out to NexLAN to discuss the details of the asset management functionality you need.

AccountMate Classes Coming Up

1. Payroll Module: September 12-16, 2022—Registration is now open

Are you new to doing payroll in AccountMate? Or would you like an overview of all that’s offered in AccountMate Payroll?

The beefiest module in AccountMate is the Payroll module because there’s so many details and options. Does that new earning code need to be included in Worker’s Comp calculations? Is your health insurance pre-tax or post-tax? Does your PTO accrue by pay period or by hours worked or all at once on January 1 or on the anniversary of employee’s hire-date? What are the current federal, state, and local payroll tax rates and your payment statuses for each? And lots more… which AccountMate’s Payroll module can handle!

Of course NexLAN is here to assist with initial setup and can provide advice over time so you don’t have to remember the myriad setup detailsbut if you’re a payroll manager or specialist it’s great to learn about everything that’s possible with the module, so you’re knowledgeable when ideas and changes are being discussed in your company.

The payroll class is offered only once per year by AccountMate corporate and, sorry, but it isn’t included in the free class seats of an active Lifecycle Maintenance agreement.

Course overview

Course outline

Course schedule

2. Core AccountMate Modules: October 6 – November 10, 2022—Registration is now open

This 6-week online class has 2 sessions per week, covering nearly a dozen core modules, and is excellent for new hires in your company—especially since registration is included in the active Lifecycle Maintenance agreement.

Course overview

Course outline

Course schedule

Please send us an email with any questions or to register for these classes.

AccountMate Tech Note: Understanding the Electronic Payment (ACH) Feature in AR

AccountMate’s Electronic Payment feature in the Accounts Receivable module allows you to automatically pull payment from customer bank accounts by creating an ACH (Automated Clearing House) file, then uploading it to your bank for processing. Of course you need customer bank account information—and permission!—but this is quick way to automatically collect payments, typically when you have customers on a subscription-basis for products or services.

Article #1334: Understanding the Electronic Payment Feature in Accounts Receivable discusses how to use the electronic payment feature in Accounts Receivable and lists the available reports that contain information on customers’ electronic payments.

AccountMate Tech Note: Tracking Commissionable Sales in AccountMate

One strategic way to motivate a sales force is the implementation of commission-based compensation. Employers need information about which sales are subject to commissions so they can measure each salesperson’s performance, and estimate and pay the commissions that are due to them.

Article #1228: Tracking Commissionable Sales in AccountMate discusses how to set up commission bases, create and maintain commission codes, use commission codes in AccountMate, and generate the Commissionable Sales Report.

See also NexLAN’s article about handling complex commission plans in your flexible AccountMate system, Oh No, They Want to Change the Sales Commission Plan Again.

AccountMate Technical Tips

Versions: AM12 for SQL, Express, and LAN
AM11 for SQL and Express
AM10 for SQL, Express, and LAN
AM9 for LAN

Module: AR

Q: What are the conditions for the Past Due label to appear on Customer Statements?

A: The Past Due label will appear on Customer Statements if both of the following conditions are met:

  • The Print Customer Statement is set to Age by Due Date.
  • The statement Total (on the last page) is either greater than zero or greater than the Current amount.

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Versions: AM12 for SQL, Express, and LAN
AM11 for SQL and Express
AM10 for SQL, Express, and LAN
AM9 for LAN

Module: AP

Q: Can I amend a fully paid AP invoice?

A: Yes, you can amend a fully paid AP invoice as long as the invoice is not yet moved to history and you do not change the invoice amount to an amount that is lower than the paid amount.

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Versions: AM12 for SQL, Express, and LAN
AM11 for SQL and Express
AM10 for SQL, Express, and LAN
AM9 for LAN

Modules: AP, AR, BR, IC, MI, PO, PR, RA, SO

Q: I can no longer find the journal entries in the GL Transfer Report that were displayed the last time I ran the report. The report is generated using the SYSTEM DEFAULT macro the same way I generated it before. Why are the journal entries missing?

A: This happens if the journal entries that you are looking for are for transactions that have been permanently transferred to General Ledger (i.e., the fiscal period for the transactions has been closed through Period-End Closing). The GL Transfer Report in subsidiary modules only displays the journal entries for transactions that are not yet permanently transferred to General Ledger. The journal entries for transactions that are permanently transferred can be viewed only in General Ledger using Subsidiary Module Transfer Report, General Ledger Listing, or Posted Journal Entries.

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Versions: AM12 for SQL, Express, and LAN
AM11 for SQL and Express
AM10 for SQL, Express, and LAN
AM9 for LAN

Modules: AP, AR

TIP: For companies set up to use Canada Country Tax, the GL Account ID entered in the Sales Tax Code Maintenance ► Sales Tax Payable field is used in both AP and AR.

  • In AP, this is the input tax. When you create an AP invoice and claim tax, the Sales Taxes Payable GL account ID is debited.
  • In AR, this is the output tax. When you create an AR invoice and collected tax, the Sales Taxes Payable GL account ID is credited.


An AP invoice was posted for $1000.00 with a tax claim back amount of 100 (input tax). The 100.00 tax claim back amount is posted as a debit to the Sales Taxes Payable GL account ID. When the company sold the items at 1500.00 and collected a sales tax of 150.00 (output tax) from the customer, the 150.00 sales tax amount is posted as a credit to the Sales Taxes Payable GL account ID. In this case, the company has to pay a sales tax of 50.00 only. The company is allowed to deduct from their tax payable (150.00) the tax claim back amount of 100.00.

In this example, the Sales Taxes Payable amount that will be displayed in the GST Return Report in General Ledger is only 50.00 (150.00 – 100.00).

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