General Ledger test in VERIFYiQ
VERIFYiQ saves you time because its algorithm catches up to 80% of the most common accounting errors. When it comes to the General Ledger (GL), errors arise when accountants expense items when they should be capitalized.
What test does VERIFYiQ run?
VERIFYiQ’s algorithm goes through your GL for the period and scans any accounts such as Office, Admin, Repair, etc, for expenses over $500. It will flag these transactions as warnings because they may need to be capitalized.
How can I correct this error?
The adjustment really depends on the error VERIFYiQ is detecting. Nevertheless, we recommend the following steps:
Click on the warning or error sign. VERIFYiQ will not only tell you why it thinks there might be an error, it will also explain how to fix the error.
If appropriate, go into your accounting file and adjust the underlying entries.
If you believe that VERIFYiQ is falsely flagging an entry, then simply change the warning or error icon to a check mark.
Currently, the capitalization test threshold is set at $2000. You can adjust this threshold for each client using Custom Rules. This is important because you may have some large clients who want a higher materiality, and some small clients who might want a lower materiality.
As usual, if you have any questions or feedback, please reach out via in-app chat!