Need of Software for Automatic Ledger Scrutiny
AUTOMATIC LEDGER SCRUTINY GUIDE
Practical difficulties dealing with Ledger Scrutiny / Audit:
Huge tally data with Thousands of Cost Centres, Ledgers and vouchers
Due to increased tax audit turnover limit, tally data with thousands of Cost centres, Ledgers and vouchers are received from client. Manually scrutinizing such data is time consuming and error prone
No discipline in tally ledger grouping, Bill wise accounting, Use of tally features
Tally is very flexible, user can have different ideas of ledger grouping depending upon business requirements, or accountants understanding and approach. For example, instead of keeping GST ledgers under Duties and Taxes, one can keep GST input ledgers under Purchases and GST output ledgers Under sales.
Change in Accounting staff from client side
Frequent changes in accounting staff at client’s end changes approach towards accounting style, Ledger grouping style requiring alteration in audit procedure.
Lack of Knowledgeable resources
Even in auditor’s office many time good quality staff is not available, or experience Article Clerk are on examination leave. This hampers audit procedure, coverage, of audit and increases unnecessary pressure of meeting due dates.
Errors committed by employees and article clerks
Inexperience employee’s /article clerks commit lot off errors in manual scrutiny increasing audit risk.
No standardize approach towards scrutiny process
Every employee has different approach toward audit depending upon experience, knowledge, sincerity, and competency.
Need to take review of work done by others
Though work done by others is well accepted audit approach, still at least one deep review is required which leads to duplication of work and time consumption.
Stringent due dates
Strict due dates increases pressure on staff and requires stretched office hours
Non availability of data in time from clients
After continues follow up many clients provide data on 11th hour which may affect the completeness of audit and increases pressure on audit staff as well.
Increase reporting requirements
Each year new rules, regulation, and provisions are inserted by Government in finance act. As a result, reporting requirements are increasing year on year.
How LedgerVision Helps:
Superfast tally ledger scrutiny
LedgerVision Is very fast and completes scrutiny within minutes. Speed of scrutiny depends upon number of cost centres, numbers of ledgers /vouchers. But most important thing is RAM size of the computer. Heavier the DATA Higher is the RAM required to finish scrutiny in minutes.
Configurable, takes care of any style of tally accounting
One-time configuration for each tally company is required when user runs scrutiny for the first time. This configuration is saved in the system and can be downloaded in excel so that different user using different computer can use it for scrutinising same tally company. Configuration takes care of each style of accounting and makes sure that nothing is left while applying scrutiny rules.
Captures all manual errors committed by new account staff if there is change in staff at client side
LedgerVision captures all wrong accounting entry, wrong GST and wrong TDS entries. Also it captures pending provision and prepaid expenses. So errors of omission and errors of commission are captured by LedgerVision
Inbuilt rule engine, works as expert system
More than 220 in built rules are maintained in rule engine. All the rules are updated or added as per new Government enactment or suggestion by users. LedgerVision works as expert system.
No need to depend on Employees / Article Clerks
As LedgerVision is Automatic Tally ledger Scrutiny tool with inbuilt scrutiny rules , it performs scrutiny procedure as an expert. 100% vouchers and ledgers are checked by the system assuring completeness of audit and reduction of audit risk. So auditor will not have to depend on employee /Article clerks
Standardized approach and output of each scrutiny
Scrutiny procedure is system driven and all reports are in standardized format and downloadable to excel
No need to take review of work done by LedgerVision
Once user is satisfied by output of the audit tool, the configuration is finalized and saved in the system. There after scrutiny procedure will work as plug and play and user will not have to review the reports generated by ledger vision
Helps in meeting due dates in time
Automatic and Fast scrutiny procedure saves lot of Man hours and energy so that due dates are easily honored.
Delay from client’s side in data availability is taken care fast and automatic scrutiny procedure
When data is received on 11th hour , LedgerVision performs 100% checking in very short time which thereby removing pressure on audit staff. It provides the relief as 100% checking is done by system assuring nothing is left due to delay in receipt of data from client.
More than 68 reports are provided covering all reporting requirements
Currently more than 68 reports are generated taking care of all reporting requirements of the law. On Monthly basis LedgerVision team takes review and updates or adds reports as per changes in Govt. policies, enactments.
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