Understanding Revenue and Receivables at the push of a button
Revenue is a key area of most financial statements. Understanding the revenue and receivables cycle and identifying separate revenue streams can be time-consuming and challenging. Teams often find it challenging to design an effective and efficient approach to testing this balance.
How did Inflo help?
Inflo instantly visualises every single accounting entry impacting the revenue and receivables cycle. The team could identify at a glance those which were behaving as expected, and highlight anomalous transactions. This allowed them to focus in on these unusual entries. They were also able to analyse sales tax trends and individual user behaviour within the cycle.
What was the result?
Thanks to this approach, the team were able to effectively identify and test the use of suspense accounts within the receivables cycle. They also noted that when credit notes were raised, they failed to take account of different sales tax treatments on the original invoice. The team were able to raise this a control point in their management letter, and identify how an improved system configuration could avoid this issue in the future. The revenue analyser allowed the team to create an efficient approach to testing revenue that also highlighted business process improvements for their client.