Accounts Reconciliation Blog

In every business, it is important to reconcile balance sheet accounts at the end of every period as part of the closing process. This could be every month, quarter, or year-end. By doing so, you will be able to identify if there are any errors before closing. You have to do accounts payable reconciliation and accounts receivables reconciliation.
 
The balance sheet account reconciliation is the comparison of the account’s general ledger trial balance with another source. It could be internal like a subledger, or external like a bank statement. Differences in the timing of transactions, such as outstanding checks, are identified as reconciling items.