She has bachelor’s degrees in political science from North Carolina State University and in accounting from University of Phoenix. Aldridge is completing her Certified Financial Planner designation via New York University. We can see below that Macy’s reported a credit balance of $3,800 for inventory in the period.

1. The two footings are netted together to calculate the account balance for the period.
2. The totals, as shown below, are located below the newly drawn horizontal line, which indicates the totals have been calculated.
3. Additionally, footings provide a foundation for more advanced financial analyses and reporting, enabling stakeholders to gain valuable insights into the company’s financial performance and position.
4. This visual representation made it easier for accountants to quickly reference and comprehend the totals.

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For example, descriptions of upcoming new product releases may be included, as well as issues about a potential product recall. To check the extensions on a purchase invoice means to verify that the number of units of each item multiplied by its unit cost agrees with the total dollar amount for each item. For example, if 15 units of Item Q have a per unit cost of $5, the total cost for Item Q should be $75. Christine Aldridge is a financial planner who has been writing articles related to personal finance since 2011.

What Are Footnotes to Financial Statements? Types and Importance

Each inventory transaction is recorded during the period in its respective column—whether it was a debit or credit to the inventory account. In sales analysis, footings can be used to calculate and compare the total sales for different products, regions, or time periods. By totaling the sales figures, footings enable decision-makers to identify the highest-selling products, identify growth opportunities, and analyze sales trends.

The debit and credit columns are summed, whereby the total of each column is a footing. Incorporating footings in accounting practices enhances the efficiency, accuracy, and understanding of financial information. It empowers accountants, managers, and stakeholders with summarized and organized data, facilitating effective analysis, reporting, and decision-making processes. In an income statement, footings are used to calculate and present the total revenue, total expenses, and ultimately, the net income. By totaling the revenue and expense columns, footings provide a clear picture of the company’s financial performance during a specific period.

Note that the table shows the hours that three employees spent working for three clients. An auditor will “foot” each of these columns as well as the “Total” column to verify that the detailed amounts appearing in each column add up to the each column’s sum (121, 176, 66, and 363). Accountants and auditors use the word foot to mean adding one or more columns of numbers. When there are several columns of numbers along with a “Total” column, they will crossfoot the totals.

Understanding Footings

In a balance sheet, footings are vital for showcasing the assets, liabilities, and equity of a company. By summing up the values in the asset and liability columns, footings provide a comprehensive view of the company’s financial position at a specific point in time. This facilitates analysis and decision-making related to liquidity, solvency, and overall financial health. It is important for analysts and investors to read the footnotes to the financial statements included in a company’s interim and annual reports. Footnotes also explain in detail why any footing in accounting irregular or unusual activities such as a one-time expense has occurred and what its impact may be on future profitability. In conclusion, footings play a fundamental role in accounting, enabling concise data presentation, streamlined analysis, and informed decision-making.

In double-entry bookkeeping, every account — whether it’s cash, accounts payable, wages payable, or another type — has a debit and credit side; an entry on one side is balanced by a corresponding entry on the other. Footing is an essential step in the accountant’s ultimate goal, which is to balance the accounts. When you foot the columns on one side, the sum must match the foots on the other. If there is no match, then the columns “don’t foot,” meaning either the math or one or more of the entries are in error. In the following table crossfooting means adding 121 + 176 + 66 to be certain that its total of 363 is equal to the total or sum of the “Total” column’s 363. We will use the table below to illustrate the meaning of crossfoot or crossfooting.