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Technical accounting

The work you charge the most for.

Leases, revenue recognition, multi-currency and consolidation are where firms earn their fees and lose their weekends. These are the schedules, built once and maintained by the system.

Lease · 88 Market St

Classifying
Commencement01 Apr 2026
Term120 months
Monthly payment9,750.00
Discount rate5.40%
Fair value960,000.00
Economic life120 months
  • Transfer of ownershipNo
  • Purchase option reasonably certainNo
  • Term ÷ economic life120 / 120 = 100%
  • PV ÷ fair value902,548 / 960,000 = 94%
  • Specialised assetNo

Two criteria met, and either alone is sufficient. Classified as a finance lease, with the reasoning kept beside the verdict.

Liability rollforward · effective interest

120 periods
PeriodOpeningInterestPrincipalClosing
Apr 26902,548.004,061.475,688.53896,859.47
May 26896,859.474,035.875,714.13891,145.34
Jun 26891,145.344,010.155,739.85885,405.49
Jul 26885,405.493,984.325,765.68879,639.81
Aug 26879,639.813,958.385,791.62873,848.19
Sep 26873,848.193,932.325,817.68868,030.51
Oct 26868,030.513,906.145,843.86862,186.65
Nov 26862,186.653,879.845,870.16856,316.49
Dec 26856,316.493,853.425,896.58850,419.91
Mar 369,706.6343.689,706.320.00
Total1,170,000 paid267,452902,5480.00

Lease rollforward · 88 Market St.xlsx

120 periods · ROU amortisation on the second tab

Ledger check

Needs attention

2210 Lease liability holds 84,120.00 that no lease in the register accounts for

Either a lease has not been entered, or an old one was never retired. Raised now, not in the audit.

ASC 842

Classification you can show your work on.

All five classification criteria are evaluated: transfer of ownership, purchase option, term against economic life, present value against fair value, and specialised asset. The result comes back with each criterion's verdict and the computed present value, not just the word 'finance'.

From there the register builds the full period-by-period liability rollforward on the effective interest method, with right-of-use amortisation alongside it. Straight-line for finance leases; the plug against single lease cost for operating.

The final period absorbs rounding so the liability closes at exactly zero, which is the sort of detail that decides whether a schedule survives review.

Flux · Aug 2026 vs Jul 2026

P&L · posted ledger
AccountAugJulVariance%
4000 Revenue412,880382,880+30,000+7.8%
5000 Cost of revenue148,220141,900+6,320+4.5%
6000 Salaries148,902147,410+1,492+1.0%
6120 Contractors28,04019,840+8,200+41.3%
6300 Infrastructure14,88212,110+2,772+22.9%
6510 Processing fees8,2047,690+514+6.7%
6710 Recruiting42,0000+42,000new
6100 Rent9,7509,75000.0%

What moved it · 6120 Contractors

Opening

Acme Consulting

12 Aug · #JE-1187

6,900.00

Northline Design

19 Aug · #JE-1204

1,300.00

Praxis Data Labs

22 Aug · #JE-1219

4,800.00

Reversal · Jul accrual

28 Aug · #JE-1231

(4,800.00)

Flux · Aug 2026.xlsx

Every account, with its driver entries

Commentary

Explain

Net income improved $12,400 vs Jul 2026 on revenue up $30,000 (+7.8%) on two new logos, expenses up $17,600. Gross margin held at 64.1% (64.3% prior). Three accounts moved more than 10%: Recruiting $42,000 (new: Heidrick retainer, PO-1188, two instalments still to come), Contractors $8,200 (+41.3%, mostly Acme Consulting $6,900), Infrastructure $2,772 (+22.9%, the AWS step-up that renews 12 Apr).

TAI flagged one thing to ask about

Contractors has now exceeded budget for the third month. At this run rate the annual line overruns by $34,000, and a question is drafted for the client, due with the board pack.

Every figure in that paragraph traces to posted entries. If the ledger moves afterwards, the commentary is marked stale rather than left to quietly go wrong.

ASC 606

Allocation that adds up to the contract.

Performance obligations are allocated on relative standalone selling price, with a running remainder so the allocation sums exactly to the contract value rather than leaving a cent adrift.

Each obligation becomes a recurring schedule that releases deferred revenue month by month through the close, and the allocated, recognised and remaining position is available per plan and in total at any point.

The ledger is also swept for deferred revenue balances that have no recognition plan behind them, which is how revenue quietly goes missing.

Contract · allocation

Balanced
Contract value180,000.00
Allocated180,000.00
Recognised to date52,500.00
Remaining127,500.00
Multi-currency

It will not guess a rate.

Foreign-currency lines keep their source amount, their currency and the rate applied, and post the converted amount, so the entry balances in the functional currency, where balancing actually matters.

Revaluation restates monetary items only, correctly leaving prepaids, inventory, fixed assets and deferred balances alone. The plan is reviewable before anything posts, and re-running a period that has already been revalued returns the existing entry rather than posting a second one.

If there is no rate on file for the date, it stops and asks. It never falls back to a rate of one. A revaluation that guesses a rate is worse than none.

Revaluation · March

Plan
  • 01Monetary assets and liabilities only
  • 02Prepaid, inventory, fixed and deferred balances excluded
  • 03Reviewable before posting, as one balanced entry
  • 04Idempotent: a second run posts nothing
Consolidation

Eliminations that are entries, not spreadsheet columns.

Entities roll up by account code into a group P&L, balance sheet and cash flow, presented before eliminations, eliminations, and after, so the group numbers can be taken apart.

Reciprocal intercompany balances are detected and proposed at the lesser leg, with anything unmatched listed rather than silently absorbed. You add what belongs and leave what does not.

Posted eliminations are real, reversible journal entries written into a separate elimination entity, previewed before they are applied. Nothing is a formula in a cell that somebody has to rebuild next quarter.

Firm · March close

14 clients

9

Closed

avg day 4.2

4

In progress

on track

1

Blocked

feed reauth

11,940

Entries

across the firm

March closed

Harborline Foods

day 4 · 1,204 entries · 0 open · D. Okonjo

scoped

Locked 04 Apr · 8 of 8 checks passed · package sent

2 items open

Vantage Robotics

day 6 · 880 entries · 2 open · M. Silva

scoped

Flux review on 6810 Marketing · 8,900.00 A/R part payment unapplied

Awaiting bank feed

Cedar & Co

day 2 · 512 entries · 1 blocker · A. Reyes

scoped

QBO reauthorised 02 Apr · feed resumes tomorrow, TAI has pre-coded 340 items

Screen capture · FX revaluation, 12s. Enter a closing rate, plan the revaluation, post it, run it again and show it returns the same entry.

The short version

Schedules that survive a reviewer, built in an afternoon.

Classification with its reasoning attached, rollforwards that close to zero, allocations that sum to the contract, and eliminations you can point at.

Next

Operations and approvals

Projects, spend and approvals coded at the point of capture by the people doing the work, arriving in accounting ready for review.