Diff checkers are online tools that are used by people in different fields and industries for different purposes. They have a simple but very useful function. Among all the different things that they can be used for, they can be particularly helpful for data verification in financial statements.
How exactly? That is what we’re going to be looking at in this post.
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What are financial statements?
Financial statements are the documents that are prepared by companies to reflect different types of financial records. Examples of financial statements are income statements, balance sheets, etc.
In these types of statements, the accuracy of data is vital and necessary. If there are any errors or discrepancies in these statements, it can lead to long-lasting consequences.
These statements are made to show things like the value of assets and liabilities of a company. Some of these statements are made to show the profitability of the company in terms of the current ratio and the working capital, etc.
The information from these statements is used by companies when they have to audit and analyze their finances, perform predictive analysis, etc.
Considering the importance and utility of financial statements, it becomes clear why data verification is so necessary. That is the point that we’re making here with all of this discussion.
With this part of the post done, let’s move on to look at what diff checkers are so that we can address the main purpose of this article.
What are diff checkers?
Diff checkers are online tools that are made to detect differences between two inputs. In these tools, there are usually two different fields where you have to add input (in alphanumeric form). Then, once you start the process, the tool spots the differences between them and highlights them so that you can easily visualize them.
Here is the interface of one diff checker in particular:
Role Of Diff Checkers in Data Verification in Financial Statements
Assume you have a financial statement that’s more than 100 pages. That’s a lengthy one, right? Now let’s say you have to make some changes in it. It will take you a few minutes or a few hours to do that.
And when it’s time to check if you have make the right changes, and only the changes that where required, will you open the new and the previous financial statement together and match them?
That’s what you used to do. Now you don’t have to do it anymore. That’s where Diff checkers make the entry. They can play a vital role in saving your time. How? It’s simple
To check the differences between the original and the new statement, all you need to do is upload both the statements in the tool, and the tool will come up show/highlight them.
Now you can easily check if the differences are the things you were supposed to change, and there is nothing extra. If you used the typical way, you’ll wasting hours of time.While if you use a online diff checker, it will only take you a few minutes to cross match.
How to Use a Diff Checker?
Now the question is, how do you use a diff checker. It’s a tool that’s very easy to use. How easy? See the steps to know:
- Upload both the files into the tool
- Click ‘Check Difference’
Two steps are all you need to follow. The rest will be done by the tool, and within a few seconds, you’ll be able to see the results. Than you can easily match the both, as all the differences will be highlighted.
Choosing a Diff Checker
Before you start using a Diff checker, you need to find the perfect one for you. And not all the diff checkers on the internet are same. Different Diff checkers have different features. The main things you want to keep in mind when choosing a diff checker are:
- User interface – Make sure that the user interface (UI) of the Diff Checker that you choose is easy to understand, so you don’t make any mistakes in when checking your statement
- Files supported – See if the file type of your financial statement and make sure the tool supports it.
- Pricing – Typically, Diff Checkers are free to use. However, if you are choosing a paid one, make sure to check if the other free tools have the same features. If they have, we recommend going for a free tool.
That’s all the factors you need to consider before choosing a Diff Checker.
Diff checkers are the tools that are used to check difference between to two text. And that can be a very useful feature when you are verifying difference between two financial statements.
When you make changes in a financial statement, and want to verify the changes you have made by comparing it to the original file, you can use a Diff checker to save you tons of time.