Every organisation is different or so they say. However we haven't met a business we couldn't help.

The elements that make up a good reconciliation are similar in each organisation.

A consistent approach should be undertaken to standarise the reconciliation processes.

What constitutes a good balance sheet reconciliation?

A reconciliation should begin with comparing the General Ledger closing balance to the sub-ledger or other relevant source (such as bank statements or other third-party documents).

Differences between the two need to be investigated, quantified and where possible, resolved by posting correcting journals to the general ledger or sub-ledger as required.

Anomalies should be recorded as reconciling items to provide visibility.

The balances should match and be fully supported with attached supporting documentation.and attached to the reconciliation.

The review process ensures the reconciliation is complete, you can also add a layer to approve that the reconciliation is complete.

A framework and a standardised process goes a long way to improve the reconciliation process each month end.

Taking Notes