The totals and balances list and the account statement are essential accounting tools that fulfill different purposes. While the totals and balances list provides a detailed overview of all account movements within a period, the account statement serves as a condensed presentation of account balances for external purposes.
| Feature | Totals and balances list | Statement of accounts |
|---|---|---|
| Contents | List of all accounts with totals of debit and credit postings and balances | Display of the closing balances of individual accounts without detailed posting transactions |
| Level of detail | Aggregated values with opening balances, posting totals and closing balances | Only the balance of an account on the reporting date, without listing individual business transactions |
| Purpose | Control of accounting, preparation of the balance sheet and profit and loss account | Simplified presentation of account balances for external auditing purposes |
| Reference date | Yes, shows the account balance at a defined point in time | Yes, only contains the closing balances of the accounts on the respective reporting date |
| Utilization | Internal evaluations, financial accounting, business analyses, annual financial statements | Providing evidence for tax audits, credit analyses and external control purposes |
Totals and balances list
The totals and balances list records all of a company's accounting accounts and shows all movements within a specific period. It forms the basis for preparing the balance sheet and profit and loss account and enables comprehensive control of business transactions.
The list of balances not only shows the closing balances of the accounts, but also their opening balances and all posting movements in aggregated form.
The list of totals and balances usually contains
- A complete list of all of a company's accounting accounts
- The opening and closing balances of all accounts
- The posting transactions that occurred during a certain period as totals
- An overview of the debit and credit sides without individual transaction statements
The list of balances enables regular monitoring of accounting and serves as an internal management tool for business analysis.
Statement of accounts
The account statement is a very abbreviated representation of the account balances and, unlike the totals and balances list, does not provide a detailed breakdown of the individual posting transactions. It only shows the amount of a specific account on a key date, without showing the detailed history of the postings.
The account statement is often required for external purposes, for example for tax audits or credit analyses, in order to obtain an overview of existing accounts and their balances.
An account statement typically contains
- A tabular presentation of the accounts with their balance on the reporting date
- No detailed individual postings or contra accounts
- A simplified overview that is primarily used to check final stock levels
As the statement of accounts is less detailed than the list of totals and balances, it is primarily used as evidence for external parties and does not contain complete documentation of business transactions.
Use in practice
The totals and balances list is an essential internal control instrument, while the statement of accounts is mainly used for external purposes. Both documents have their own benefits and complement each other depending on the application.
The totals and balances list is used for:
- Preparation of the balance sheet and income statement. A clear presentation of the Balance sheet accounting using the example of a GmbH in SKR 04 offers a deeper understanding.
- Control of bookkeeping and reconciliation of accounts
- Tax and business evaluations for internal analysis
The account statement is used for
- Clear presentation of account balances on a specific key date
- Provision of information for external auditors or lenders, who are increasingly using these Automate the analysis of creditworthiness.
- Obligation to provide evidence to tax authorities or other institutions
While the list of totals and balances enables a comprehensive and detailed analysis of account movements, the statement of accounts serves as a condensed presentation of account balances for external purposes. Both documents are indispensable in accounting and contribute to the transparency of financial reporting.
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