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.
Example: Use Tax Account Reconciliation
| View file | ||
|---|---|---|
|
Example: Bank Account Reconciliation
Account balance for the bank account is as follow:
...
Refer to which GL accounts belong to each Financial Reporting Line Item in the file below:
| View file | |
|---|---|
|
...
|