Account Analysis Definition Overview and Explanation

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 Account Analysis

What is Account Analysis?

Account analysis is the examination of the accounts specially the accounts that are related to the balance sheet. Without proper examination, the fault will lead to a bigger mismatch in the future. A company’s external auditors are responsible for analyzing the results and if they find any mismatch during an audit, they’ll require that the items should be written off as an unexpected income. A company should routinely examine the accounts so that the bulk that was written down doesn’t take place.

Account analysis can also be done on the accounts that are subject to the income statements. Though these account balances don’t transfer from year to year, so they have a small chance to build up unusual items in these accounts.

How to Analyze Accounts

To analyze an account you can use excel and put the data into the excel worksheet. Now after putting all the data you can assign them dates. After assigning you can now reconcile the data in excel.

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