Bank transfers and bank sweeps are common reconciling items in the proof of cash. Audit Sight identifies and categorizes these transactions differently depending on whether you are using Standard Cash Proof or Advanced Cash Proof.
This article explains how each approach works and ways you can update the results.
What Are Bank Transfers and Bank Sweeps?
Bank Transfers typically represent movements of cash between bank accounts owned by the same entity (e.g., operating account to payroll account).
Bank Sweeps are automated transfers, often initiated by the bank, to concentrate cash, fund investment accounts, or cover short-term liquidity needs.
These transactions usually do not impact income or expense, but they are critical to properly identifying reconciling items in a cash proof.
How Bank Transfers Are Identified in Standard Cash Proof
In Standard Cash Proof, Audit Sight relies on AI-driven text analysis of bank transaction descriptions.
How it works:
The system reads the transaction description from the bank data.
If the description contains key terms such as:
transfer
sweep
cash sweep
internal transfer
The transaction is automatically tagged as a Bank Transfer.
This approach allows Audit Sight to efficiently identify transfers when only banking data is available.
Important to know:
Because this method relies on transaction descriptions, accuracy depends on how descriptive the bank-provided text is.
What If a Transaction Is Misclassified?
If the AI does not have enough information in the description to correctly identify a transaction, you can manually correct it.
How to update the classification:
Navigate to the Banking Data screen.
Use filtering on the AI Category to see the results
Update the AI Category individually or in total reflect the correct treatment.
Any changes made here will kick off a new regeneration of the Standard Work paper.
How Bank Transfers Are Identified in Advanced Cash Proof
In Advanced Cash Proof, Audit Sight uses a matching-based approach instead of relying solely on descriptions.
How it works:
Banking transactions are matched directly to accounting (GL) transactions.
Transfers and sweeps are identified based on:
Offsetting entries
Matching dates and amounts
Corresponding accounts in the general ledger
Why this is more precise:
You have two points of data:
Banking data
Accounting data
This significantly reduces reliance on transaction descriptions and minimizes judgment-based classification.
Summary: Standard vs. Advanced Cash Proof
| Feature | Standard Cash Proof | Advanced Cash Proof |
|---|---|---|
| Data Used | Banking data only | Banking + accounting data |
| Identification Method | AI reads transaction descriptions | Direct transaction matching to the GL |
| Manual Review | Available via Bank Transactions screen | Rarely needed |
Best Practice Recommendation
Use Standard Cash Proof for simple clients.
Use Advanced Cash Proof when you want the most precise identification of bank transfers and sweeps, especially for clients with complex cash activity.
If you have questions or need help adjusting transaction mappings, contact the Audit Sight support team.
