Designed for: accountants, finance managers, controllers, process owners and reviewers working inside organisations.
1. Process objective
Identify relationships, match transactions and eliminate group balances without late surprises. The process should produce a result that is complete, accurate, supported, approved and traceable to the financial statements.
2. Core workflow
- Maintain a legal-entity and relationship master.
- Tag counterparties consistently in all systems.
- Exchange intercompany statements before close.
- Resolve currency, timing, markup and document differences.
- Prepare eliminations and related-party disclosures from one controlled dataset.
3. Practical situation
Two group entities show different balances because one records goods on dispatch and the other on receipt. The close process identifies goods in transit and posts consistent cut-off adjustments.
4. Ownership model
| Role | Responsibility |
|---|---|
| Preparer | Obtains source data, performs the calculation or reconciliation and explains exceptions. |
| Process owner | Confirms operational facts, resolves missing information and approves business assumptions. |
| Reviewer | Challenges completeness, accounting treatment, material judgments and unresolved items. |
| Controller | Monitors completion, escalates risk and ensures the result flows correctly into reporting. |
5. Minimum evidence pack
- Approved policy or process note
- Source-system report and data lineage
- Reconciliation or calculation schedule
- Exception log with owner and ageing
- Preparer and reviewer sign-off
6. Reviewer challenge
- Is the population complete and tied to the general ledger?
- Are aged or unusual items separately explained?
- Does the treatment follow the entity policy and applicable standard?
- Are assumptions supported by current information?
- Is every adjustment posted, approved and traceable?
Newton of Accounts approach:
Conceptual clarity is drawn from CA Pranav P. Tulshyan’s accounting teaching work, then independently developed into professional workflows, controls and documentation for company accounts.