We’re currently connecting to our ERP system (Exact Online) using the Invantive connector. We can access all historical financial data, but we’re looking for guidance on the best practice for modeling balance sheet accounts.
For P&L accounts, it’s straightforward: we only need the transactions for the financial year under review. However, balance sheet accounts are cumulative by nature: you need to add up transactions from the start of the data to get the correct closing balances.
For now, this isn’t an issue because we only had data starting from 2019.
But in a broader setup, we’re wondering if there’s a more efficient approach for example, by starting from the closing balance of the previous financial year (which becomes the opening balance of the current year), and then adding only the transactions from the year under review.
Our key questions are:
- What’s the best way to obtain the closing balances (in which table) of the previous year - which serve as the opening balances for the current one) via Invantive / Exact Online?
- Is this incremental approach (starting from prior year closing balances) generally recommended, or should we always calculate balances cumulatively from the beginning of available data?
Any advice or examples of how others handle this would be greatly appreciated!