Account reconciliation is an underappreciated yet critical control to help ensure a business’s financial integrity. Weaknesses and inefficiencies in the reconciliation process often lead to mistakes on the balance sheet and overall inaccuracies in the financial close. At Gurian PLLC, our CPA firm has the experience and expertise to complete your monthly bookkeeping and reconciling accounts.
Small to mid-sized business owners trust Gurian PLLC to handle their monthly account reconciliations because they know their accounts are balanced and closed efficiently, accurately, and timely.
Call 469-374-3150 today to schedule a free initial consultation
Account Reconciliation Process
The account reconciliation starts after the close of the financial period. A company will check their internal accounting statements to the bank statement looking for discrepancies. Balance sheet reconciliation is performed monthly, quarterly or at the end of the year.
Reconciliation accounting consists of:
- Cash reconciliation - Cash accounts reconciled with bank statement.
- Accounts receivable & accounts payable reconciled against aging schedules - Inventory and fixed assets are reconciled by physical count.
- Investigate discrepancies and take action
Account Reconciliation Formula
A bank reconciliation is sometimes thought of as a formula. The bank reconciliation is complete, when the account reconciliation formula matches the bank statement.
- (Cash account balance on your records) plus or minus (reconciling items) = Bank statement balance