What is a Trial Balance with Currency Analysis?
A Trial Balance with Currency Analysis is a valuable tool utilized by Group Controllers at the end of each month to evaluate subsidiary balances before and after currency conversion. This type of report provides a comprehensive comparison of local (functional) and reporting currency amounts, presenting them side by side. Additionally, the report highlights any currency translation adjustments (CTA) that arise from variances between month-end average and month-end closing exchange rates. Below, you will find an example of a Trial Balance with Currency Analysis report.
Purpose of Trial Balance Currency Reports
Trial Balance Currency Reports serve the purpose of assisting companies and organizations in reviewing trial balance data reported in foreign currencies by their accounting staff. When integrated into effective business practices within the Finance & Accounting Department, these reports enhance the month-end consolidation process and minimize the risk of identifying errors or exchange rate-related issues in data obtained from foreign subsidiaries.
Benefits to Users
Utilizing Trial Balance Currency Reports with currency analysis offers numerous benefits to business users, enabling them to make informed decisions and enhance their efficiency in performing their job responsibilities. By providing a clear overview of subsidiary balances in different currencies, these reports empower users to gain a comprehensive understanding of the financial status of their foreign operations. Users can easily identify significant variations by comparing local and reporting currency amounts side by side, allowing them to take appropriate actions accordingly. Moreover, the inclusion of currency translation adjustments (CTA) helps users comprehend the impact of exchange rate fluctuations on their financial data.
Trial Balance Currency Report Example
Here is an example of a Trial Balance Currency Analysis report.
You can find hundreds of additional examples here.
Who Uses This Type of Trial Balance Report?
The typical users of this type of trial balance report are: Controllers and Accountants.
Other Trial Balance Reports Often Used in Conjunction with Trial Balance Currency Reports
Progressive Finance & Accounting Departments sometimes use several different Trial Balance Currency Reports, along with profit & loss, balance sheet reports and other management and control tools.
Where Does the Data for Analysis Originate From?
The Actual (historical transactions) data typically comes from enterprise resource planning (ERP) systems like: Acumatica, Microsoft Dynamics 365 (D365) Finance, Microsoft Dynamics 365 Business Central (D365 BC), Microsoft Dynamics AX, Microsoft Dynamics NAV, Microsoft Dynamics GP, Microsoft Dynamics SL, Sage Intacct, Sage 100, Sage 300, Sage 500, Sage X3, SAP Business One, SAP ByDesign, Netsuite and others.
In analyses where budgets or forecasts are used, the planning data most often originates from in-house Excel spreadsheet models or from professional corporate performance management (CPM/EPM) solutions.
What Tools are Typically used for Reporting, Planning and Dashboards?
Examples of business software used with the data and ERPs mentioned above are:
- Native ERP report writers and query tools
- Spreadsheets (for example Microsoft Excel)
- Corporate Performance Management (CPM) tools (for example Solver)
- Dashboards (for example Microsoft Power BI and Tableau)
Corporate Performance Management (CPM) Cloud Solutions and More Examples
- View 100’s of reporting, consolidations, planning, budgeting, forecasting and dashboard examples here
- Discover how the Solver CPM solution delivers financial and operational reporting
- Discover how the Solver CPM solution delivers planning, budgeting and forecasting
- Watch demo videos of reporting, planning and dashboards
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