Why Doesn't My Aging Report Match My General Ledger?

construction accounting questions or answersEveryone in a construction business knows the importance of managing cash flow. Aging reports, for both accounts receivable and accounts payable, are the primary reports used to helpSometimes, the totals on your aging reports may not match the totals on your general ledger (or financial statements). The totals should always match, so when they don't it is important to investigate, identify the discrepancies, and correct the accounting records. An issue to be aware of in the current software versionĀ  is when an edit to a saved transaction in AP or AR, it is possible that the corresponding GL record can be recorded in a different period from the AP or AR transaction. This happens because the system period is set to a different period than the period in which the original transaction was created. The result is the edit to the transaction is recorded in the subsidiary ledger (AP or AR) in the original period while the GL entry is recorded in the current system period.So if your aging reports are out of balance with your financial statements, look for this type of period discrepancy. To prevent these type of problems in the future, remember to change the system period to match the period of the transaction you are editing before you make your edit.

Feel free to give us a call if you have any questions about your aging reports or other questions about how to get the most out of your construction management software.