Back to top

Account Reconciliation

Download PDF of Checklist

Most companies regularly reconcile their bank accounts. But many companies do not regularly reconcile other accounts.

Account reconciliation is the process of determining what is in an account balance. It is NOT a download or printout of all the transactions going through the account (a general ledger detail).

To reconcile an account, it is necessary to match the ins and outs of the account. For example in an accrued liabilities account, there will be accruals, and there will be payments against those accruals. To reconcile this account, one would start with the first accrual, and trace through the account to see if it had been paid or otherwise relieved. If it has not been relieved, then it would be a component of the ending accrual balance. If it had been paid, it would not be a component of the ending balance.

The concept of account reconciliation is easy to understand. But it can take a lot of time. This is where Audit Prep Services can help. We can do this process for you in a fast, efficient way. And you don’t have to tie up your already limited resources.

Download Account Reconciliation