What are unaccounted expenses?
Unaccounted expenses are expenses that occur during a specific accounting period but are not accounted for before books are closed.
An accounting period is the time range during which business transactions accumulate into financial statements. Most businesses use a month for their internal accounting period. In such cases, the expenses and income made in a particular month are accounted for by the end of the month or the beginning of the next month, and the books are closed.
If an expense incurred in a month isn’t accounted for before books are closed, it needs to be accounted for in the next month. Otherwise, the expense goes unaccounted for and can result in inaccuracies.
For example, imagine that your business has an expense from May 1 that wasn’t posted on Sage Intacct during the accounting period of May 1-31. You’d like to post the transaction now, but the current accounting period is June 1-30. The accounting software may fail to add the past expense to the current accounting period. To avoid failure, Expense Management will shift the date of the May 1 expense to June 1.
Reconciling unaccounted expenses in Sage Intacct
In the Accounting integration page, go to the Configurations tab and select the Advanced settings section.
Switch on the Post entries in the next open accounting period toggle.
Select Configuration from the main top bar. Select Advanced settings.
Enable the Post entries in the current accounting period toggle.
Select Save to finish.
Once enabled, expenses from any previous month that were not exported during their accounting periods will be posted on the first day of the current accounting period.
If you have any more questions about exporting expenses to the next open accounting period in Sage Intacct, contact our support team at support@capitalone-fylehq.com.