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
Example: Bank Account Reconciliation
Account balance for the bank account is as follow:
General Ledger:
Bank Statement:
Account Reconciliation Template:
Each account balance is subject to a reconciliation, below lists the expected reconciling frequency for different account types.
Refer to which GL accounts belong to each FS Line Item in the file below: