The Rounded button allows you to look at your financial report with the rounded balances of accounts, items and totals, by having ExcelFSM rounding the value of the accounts balances.
If turned ON, balances will be displayed and computed with rounded values.
If turned OFF, balances will be displayed and computed with decimals values.
Each worksheet remembers its own Rounded state.
Excel ‘rounding’ to 0 decimal with Format Cells | Number.
Here is a sample of a financial statement displayed with decimals values:
By changing the decimal places to 0 in the Format Cells | Number, we get the financial statement displayed with rounded values:
As it can be observed in the Assets section for example, and in the Liabilities + Net Assets section as well, changing the decimal places to 0 in the Format Cells | Number results in accuracy problems:
121 634 + 130 809 + 93 974 + 2 508 = 348 925 not 348 926 as displayed in the Assets section.
239 106 + 234 771 - 134 000 + 9 048 = 348 925 not 348 926 as displayed in the Liabilities + Net Assets section.
This is because Excel only rounded the display of the value of each cell, while still performing computation with the decimals values.
ExcelFSM rounding process
By turning On the Rounded button, ExcelFSM not only displays rounded values, but also computes with the rounded values of the accounts balances, which provides accuracy:
The rounding Adjusting Entry
As any accountant is familiar with, the rounding process sometimes results in an out of balance of 1 between the Total Assets and the Total Liabilities & Equity. To rectify that we simply record an adjusting entry, and since ExcelFSM performs computations with the rounded values of the accounts balances, we simply need to debit/credit an account balance by an amount that will change the rounded value by 1, while, on the other hand, the rounded value of the counter part must not change.
Another way to rectify this out of balance is to add a 'Rounding account' to the Chart of Accounts, then record an adjusting entry to debit/credit an account balance by the out of balance amount using this 'Rounding account' for the counter part, and leave this 'Rounding account' ungrouped into any item.