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The Profit reconciliation template gives you an audit trail from the profit or loss shown in your trial balance to the profit or loss reported in the final accounts, by listing every adjustment (journal) posted in the period and showing which of them affected the profit and loss account. It doesn't need to be manually marked as reconciled, as it's a working schedule rather than a balance you sign off.

Table of contents 

When should I use this template?

Use it whenever you've posted period-end adjustments and you need clear working papers showing how the trial balance profit or loss became the profit or loss reported in the accounts.

Before you start

Make sure all your period-end adjusting journals have been posted before you rely on this schedule. It lists exactly what has been posted at the point you view or export it, so anything posted afterwards won't yet appear. The template also carries a built-in reminder: this schedule should be exported before marking journals as posted within Silverfin, so if you want a permanent working-paper record of the adjustments as they stood, take that export first.

Background

This is a generalised reconciliation working paper, and it isn't shaped by a specific accounting standard. Its purpose is simply to evidence that the movement from the trial balance profit or loss to the final profit or loss is fully explained by the adjustments posted in the period, giving you and any reviewer a clear audit trail.

Steps

  1. Profit/(loss) per Trial Balance. The template automatically totals all income and expense nominal accounts in the trial balance to give a starting profit or loss figure. You don't need to enter anything for this, as it recalculates from the trial balance each time.
  2. Attach a supporting document (optional). An attachment icon sits next to the trial balance profit/loss line if you want to attach a supporting schedule or working file. If you never attach anything, this control simply won't appear in the exported version of the schedule.
  3. Show original accounts (Yes/No, default No). Choose whether the account numbers shown throughout the schedule are Silverfin's mapped account numbers, or the client's original bookkeeping account numbers before mapping.
  4. Only show adjustments affecting the profit and loss (Yes/No).
    • Yes: only adjustments where at least one line hits an income or expense account are listed (all lines of that adjustment are shown, not just the P&L-affecting ones), so purely balance-sheet journals, for example a reclassification between debtors and creditors, are filtered out and the schedule focuses on what actually moved profit.
    • No: every adjustment posted in the period is listed, regardless of whether it touched the profit and loss account.
  5. Review each adjustment. Both adjustments raised inside Silverfin and those recorded externally are listed, each numbered in sequence, showing debit/credit, account, account name, amount and description for every transaction line, plus a running total of the effect on profit or loss for any line that hits an income or expense account.
  6. Check the total. The final line, "Profit/(loss) per accounts", adds the trial balance profit or loss to the combined effect of all the adjustments shown, giving the profit or loss after your period-end adjustments.

What flows through to the rest of the accounts/workflow?

This template doesn't export a result to any other template. It draws on the trial balance and the period's posted adjustments, but exists purely as a standalone audit-trail working paper. It has no direct link, in either direction, to the Proof of tax charge template. The two sit alongside each other in the same workflow but don't exchange data.

What rolls forward next year?

The "Show original accounts" and "Only show adjustments affecting the profit and loss" settings carry forward as you left them, since neither is explicitly reset on rollforward. No figures roll forward, as every amount is rebuilt from scratch from next year's own trial balance and posted adjustments.

Where the data comes from

  • The trial balance's income and expense accounts, for the "per Trial Balance" starting figure.
  • Every adjustment (journal) posted in the period, whether raised inside Silverfin or recorded externally, including each of their underlying transaction lines, accounts and descriptions.

Frequently asked questions

Why doesn't an adjustment I posted appear in the schedule?

Check the "Only show adjustments affecting the profit and loss" setting. When it's set to Yes, adjustments with no income or expense lines are hidden.

Why do the account numbers look different from what I'm used to?

The "Show original accounts" setting controls whether the schedule shows Silverfin's mapped account numbers or the client's original bookkeeping numbers.

Does this template need to reconcile to a specific figure?

No, it doesn't carry a reconciled or unreconciled status. It's a working schedule showing how the trial balance profit or loss becomes the final profit or loss, not a balance you sign off against a target.