Balance Sheet Reconciliation
Balance sheet reconciliation is the process of verifying that general ledger account balances are accurate, complete, and supported by underlying documentation. It ensures the integrity of assets, liabilities, and equity reported in financial statements.
Key Details
- Key accounts reconciled include cash, accounts receivable, accounts payable, inventory, fixed assets, and accruals
- Reconciliation compares GL balances to subledgers, bank statements, third-party confirmations, and supporting schedules
- Variance investigation identifies and resolves differences through adjusting entries or error correction
- Month-end balance sheet reconciliation is a critical control for accurate and timely financial close