The purpose of an account reconciliation is to confirm that the account balance is accurate, valid, and complete. A reconciliation needs to compare the General Ledger account balance with an outside source. Any outstanding items (unmatched) should be researched to determine if an Adjusting Journal Entry (AJE) is necessary.
WHO IS EXPECTED TO COMPLETE RECONCILATIONS
Example: Use Tax Account Reconciliation
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Example: Bank Account Reconciliation
Account balance for the bank account is as follow:
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Account Reconciliation Template:
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Each account balance is subject to a reconciliation, below lists the expected reconciling frequency for different account types.
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