In the world of financial accounting, there are all sorts of terms that can cause confusion. One of them is cross posting. For those who are not yet completely familiar with this accounting technique, in this blog we explain what a cross posting is, when you will have to deal with it and how TriFact365 can support this.
What is a cross post?
A cross entry is a temporary entry on the balance sheet used to correctly account for money movements between two accounts (e.g. bank and cash, or two different bank accounts). Examples include transferring money from your business checking account to your savings account, or depositing cash into your bank account.
You can think of a cross entry as a kind of suspense account – a ‘way station’ for the money. This ensures that your records are always balanced, even if the money is still physically in transit or the transaction takes time to be processed.
An example:
You debit €500 from your business bank account and put it in the cash. In your accounts, you then make the following entries:
- Bank account af:
- Credit Bank €500
- Debit Cross-post €500
- Cash account at:
- Credit Kruispost €500
- Debit Cash €500
This balances the cross item: first it has €500 on it, and then it is written off again. So the temporary balance item is empty once both transactions are booked.
When do you use a cross post?
You use a cross post in the following situations, among others:
- Transfers between bank accounts
- Cash deposits
- Cash withdrawals from the treasury
- Corrections of bookings that run over several days
How does TriFact365 help with cross entries?
TriFact365 specialises in automating accounting processes, including processing purchase invoices, sales invoices and receipts.
Thanks to smart AI technology and automatic posting suggestions, TriFact365 instantly recognises receipts, invoices and other documents. Unfortunately, TriFact365 cannot distinguish whether there is a cash flow to be booked via cross posting.
In addition, the seamless link with accounting packages such as Exact, Twinfield, Visma, SnelStart and more ensures that entries are automatically transferred to your accounts, without double entries or errors.
