Cantilever uses basic GAAP accounting methods, which we handle inside our accounting software, Xero.
We use Gusto for our payroll. Gusto is integrated with Xero so as soon as we pay something in Gusto it appears a "Bill" in Xero, even before the cash leaves our account.
Therefore when reconciling bank transactions you often need to do a sweep of the data between Gusto and Xero to make sure you are connecting the bank transactions to the correct costs.
We run this process at the close of each calendar week (either on the Friday or Monday of the subsequent week).
After each month has concluded...
- Log in to Fidelity.
- Get the latest account balance.
- Compare that to the existing account balance for the "Long-Term Investments" account. Note the difference.
- Go to the Manual Journals. There will be a new draft journal to update the value of this account.
- Use that journal to debit or credit the account to reflect the change in value of the stock account during the last month. There should be a balancing line item for "Interest Income".
- Double-check the balance sheet against the Fidelity account to ensure that the right account value is shown.
- Double-check the income statement. There should now be a value for last month under "Interest Income" that is either negative or positive depending on how the stocks performed.
Validate that all recent fixed assets have been acquired and disposed of properly. Were there any purchases last month? Dispositions?
After validating, run depreciation through the end of the prior month. Validate that it appears on the income statement and is still clean and realistic on the balance sheet.
After each quarter has concluded...
- Run invoices between Cantilever Europe and Cantilever US
- Double-check that the passthrough vendors account is empty. If not, make sure we have the right plan to get paid or pay out whomever is missing money.
- Ty: Create report and update the team