Accounts Reconciliation Blog

The challenge to all accountants is to present a balanced statement at the end of each recording period which is usually monthly. We know that accountants can extend work deep into the night when they are working on the balance sheet account that can include accounts payable reconciliation, cash reconciliation and all other reconciliations needed to present a balanced statement. Reconciliation is the process of comparing the contents of an accounts ledger with other related sources. Differences caused by the timing of transactions, such as outstanding checks, are identified as reconciling items.

There are definite steps to be taken in a reconciliation process. It will involve examining and re-examining accounts and comparing them with other documents. These could be internal data such as cash accounts or external documents such as bank statements. Cash accounts are reconciled against a bank statement. Accounts receivable and accounts payable are reconciled against aging schedules. Inventory and fixed assets can be reconciled against a physical count.