LedgerIQ FAQ

LedgerIQ is a comprehensive financial analysis platform that transforms your trial balance or general ledger data into actionable insights. It provides 30+ analysis modules covering everything from balance sheet analysis to cash flow forecasting.

Key capabilities include:

• Automated financial statement generation (Balance Sheet, P&L, Cash Flow)
• Ratio analysis across liquidity, profitability, efficiency, and leverage
• Trend analysis and forecasting with statistical models
• Break-even analysis and working capital management
• DuPont analysis and common-size statements
• AI-powered account classification and COGS identification
• Interactive charts and visualizations powered by Chart.js

All analysis happens client-side in your browser - your financial data never leaves your device unless you choose to export reports.

LedgerIQ works with standard trial balance or general ledger exports from any accounting software. Supported formats:

• CSV - Comma-separated values (most common)
• Excel - .xlsx and .xls formats

Required columns in your export:

• Account Name/Description - Full account names
• Account Code/Number - Nominal codes
• Balance - Current balance (debit positive, credit negative or separate columns)

Optional but recommended columns:

• Account Type (Asset, Liability, Income, Expense)
• Account Category or Sub-category
• Year-to-date totals
• Prior period comparatives

LedgerIQ includes intelligent column mapping that auto-detects your data structure and allows you to confirm or adjust mappings before processing.

Yes! LedgerIQ is platform-agnostic and works with exports from any accounting software, including:

• QuickBooks (Online and Desktop)
• Xero
• Sage (50, 200, Business Cloud)
• Pandle
• FreeAgent
• KashFlow
• Any other accounting system that can export to CSV or Excel

Simply export your trial balance or general ledger from your accounting software and upload it to LedgerIQ. The platform handles the rest, including account classification and financial statement generation.

LedgerIQ provides 30+ specialized analysis modules organized by category:

Core Financial Statements:

• Balance Sheet Analysis
• Profit & Loss Statement
• Cash Flow Statement (operating, investing, financing activities)
• Common-Size Statements (vertical and horizontal analysis)

Ratio Analysis:

• Liquidity Ratios (current ratio, quick ratio, working capital)
• Profitability Ratios (gross margin, net margin, ROA, ROE)
• Efficiency Ratios (asset turnover, inventory turnover, receivables turnover)
• Leverage Ratios (debt-to-equity, debt-to-assets, interest coverage)
• DuPont Analysis (decomposition of ROE)

Trend & Forecasting:

• Ratio Trends (multi-period ratio tracking)
• Revenue Forecasting (statistical regression models)
• Expense Forecasting
• Seasonality Analysis

Operational Analysis:

• Break-Even Analysis
• Fixed vs Variable Cost Classification
• Working Capital Management
• Expense Breakdown and Analysis
• COGS Analysis

Advanced Analysis:

• Anomaly Detection
• Peer Benchmarking (industry comparisons)
• Z-Score Financial Health
• Altman Z-Score (bankruptcy prediction)

LedgerIQ includes the Universal Enrichment Intelligence System - an AI-powered account classification engine that automatically categorizes your trial balance accounts.

Classification Categories:

• Balance Sheet: Current Assets, Fixed Assets, Current Liabilities, Long-term Liabilities, Equity
• Income Statement: Revenue, COGS, Operating Expenses, Financial Expenses, Other Income/Expenses
• Sub-categories: Cash, Receivables, Inventory, Payables, Loans, etc.

How it works:

• Analyzes account names and codes using pattern recognition
• Identifies key indicators (keywords, account code ranges)
• Applies industry-standard accounting classifications
• Learns from user corrections to improve accuracy

You can review and adjust classifications before running analysis. The system remembers your preferences for future uploads.

LedgerIQ's forecasting engine uses statistical regression analysis with multiple model types to predict future revenue and expenses.

Forecasting Models:

• Linear Regression: Best for steady growth trends
• Polynomial Regression: Captures non-linear growth patterns
• Seasonal Analysis: Identifies and projects seasonal patterns
• Moving Average: Smooths out short-term fluctuations

Data Requirements:

• Minimum: 6 months of historical data
• Recommended: 12-24 months for better accuracy
• Best results: Multi-year data with consistent patterns

The system automatically evaluates multiple models and selects the best fit based on R-squared values. Forecast accuracy is highest for businesses with stable or predictable growth patterns.

Confidence intervals are provided to show the range of likely outcomes, helping you make informed planning decisions.

RiQ (short for "Reconcile IQ") is your embedded AI financial assistant that lives within the LedgerIQ platform. RiQ provides conversational analysis of your financial data.

What RiQ can do:

• Answer natural language questions about your finances
• Explain changes in key metrics and ratios
• Identify trends and anomalies in your data
• Provide context for financial statement line items
• Suggest areas that need attention or review
• Help interpret complex financial ratios

Example questions you can ask:

• "What was our highest expense last month?"
• "Why is our gross margin down?"
• "How does our current ratio compare to last quarter?"
• "Which expenses increased the most this year?"
• "Is our working capital healthy?"

RiQ analyzes your loaded financial data in real-time to provide accurate, contextual answers tailored to your specific business.

Yes! RiQ analyzes the actual financial data you've uploaded to LedgerIQ. Every answer is based on your specific numbers, not generic financial advice.

RiQ has access to:

• Your complete trial balance with all account balances
• Calculated financial statements (Balance Sheet, P&L, Cash Flow)
• All computed financial ratios and metrics
• Trend data and period-over-period comparisons
• Classification information (COGS, fixed/variable costs, etc.)

This means RiQ can provide highly specific insights like "Your inventory turnover decreased from 8.2x to 6.5x, which might indicate slower-moving stock" rather than generic advice.

Your uploaded trial balance data is processed securely and your financial data remains private.

Yes! LedgerIQ provides professional report generation capabilities designed for client-facing deliverables.

Export Formats:

• PDF Board Packs: Comprehensive financial reports with executive summaries, charts, and ratio analysis
• Excel Exports: Detailed data tables and calculations for further analysis
• CSV Downloads: Raw data exports for custom processing
• Chart Images: Individual charts and visualizations (PNG format)

Report Customization:

• Add your practice branding (logo, colors, contact details)
• Select which modules to include in the report
• Add custom commentary and notes
• Choose report layout and formatting

Board Packs are particularly popular with accountants for quarterly business reviews, presenting professional insights to clients or boards of directors.

A LedgerIQ Board Pack is a comprehensive financial report package designed for executive and board-level presentations.

Standard Board Pack Contents:

• Executive Summary: Key highlights, critical metrics, and management recommendations
• Financial Statements: Balance Sheet, P&L, Cash Flow Statement
• Key Performance Indicators: Dashboard of critical business metrics
• Ratio Analysis: Liquidity, profitability, efficiency, and leverage ratios with benchmarks
• Trend Charts: Visual representations of performance over time
• Variance Analysis: Budget vs. actual or period-over-period comparisons
• Working Capital Analysis: Cash conversion cycle and liquidity management
• Forecast Summary: Forward-looking projections and scenarios

Board Packs are fully customizable - you can include or exclude specific sections based on what's most relevant for your audience.

Yes! LedgerIQ implements a privacy-first architecture where your financial data remains under your control.

Client-Side Processing:

• All analysis happens locally in your web browser
• Your trial balance data is never uploaded to our servers
• Data stays on your device unless you explicitly choose to export
• No cloud storage of sensitive financial information

Data Handling:

• Browser session storage only (cleared when you close the tab)
• No persistent storage of uploaded financial data
• HTTPS encrypted connections for all platform interactions
• No third-party data sharing

This architecture means even we (the platform providers) never see your financial data. Everything is processed locally on your device.

RiQ uses a hybrid approach that prioritizes data privacy:

Local-First Processing:

• RiQ analyzes your data locally in the browser first
• Numerical analysis and calculations are performed client-side
• Only aggregated, anonymized insights may be sent to AI services for natural language generation

What's Never Shared:

• Specific account balances or transaction details
• Company names or identifying information
• Your complete trial balance or general ledger

What May Be Shared (Anonymized):

• Generic ratio values for context (e.g., "current ratio is 1.5")
• Trend directions (e.g., "revenue increased 15%")
• Abstract questions (e.g., "explain what working capital means")

You have full control and can opt out of any AI assistance features that require external processing.

LedgerIQ is available on specific ReconcileIQ pricing tiers:

• Free & Essential Plans: No LedgerIQ access
• Pro Plan: Basic LedgerIQ modules (core financial statements, basic ratios)
• Business & Enterprise Plans: Full LedgerIQ access with all 30+ analysis modules, RiQ assistant, and Board Pack exports

You can also purchase LedgerIQ as a standalone product if you only need financial analysis without bank reconciliation features.

Yes! LedgerIQ offers several ways to try before you buy:

• Demo Mode: Use sample financial data to explore all modules
• Free Trial: 14-day trial of full LedgerIQ features when you upgrade to Pro or higher
• Sample Reports: View example Board Packs to see output quality

We also offer free onboarding webinars for accounting practices to learn how to maximize LedgerIQ's value for client services.

No. LedgerIQ is a fully web-based platform that runs entirely in your browser. There's no software to download or install.

Benefits:

• Access from any device (desktop, laptop, tablet)
• Works on Windows, Mac, and Linux
• Always up-to-date with latest features
• No IT maintenance or updates required

Simply log in through your web browser and upload your trial balance to start analyzing.

LedgerIQ works on all modern browsers:

• Google Chrome (recommended for best performance)
• Mozilla Firefox
• Safari (Mac/iOS)
• Microsoft Edge

For optimal chart rendering and RiQ AI features, we recommend using the latest version of Chrome or Edge.

LedgerIQ is designed to handle diverse chart of accounts structures from different accounting systems and industries.

Flexibility features:

• Manual classification override for any account
• Custom account groupings and hierarchies
• Support for both UK and international account code systems
• Ability to merge or split accounts for reporting

If the AI classification doesn't match your structure perfectly, you can easily adjust classifications through the enrichment interface. LedgerIQ remembers your preferences for future uploads.