Monthly Account Reconciliation

As I previously worked as a General Ledger Accountant, I perform monthly accounts reconciliation which involves reviewing and comparing account balances in the company's general ledger with external statements, subsidiary ledgers, or other sources. Here’s a typical process breakdown:

Account Analysis: I examined each account, ensuring that transactions have been properly recorded in the correct accounts. This includes checking for accuracy in journal entries, accruals, and adjustments.

Matching Transactions: They reconcile internal records (ledger) with external documents, such as bank statements, vendor invoices, or customer accounts, to ensure that all transactions have been properly captured.

Resolving Discrepancies: If there are discrepancies (e.g., timing differences, missing transactions, or errors), I investigated the root cause and makes the necessary adjustments through journal entries or corrections.

Reconciliation Statements: A reconciliation report is generated that explains the difference between the general ledger account balance and the balance per external records. This report details the discrepancies and adjustments made to ensure both records match.

Supporting Schedules: They prepare supporting schedules for accounts that require detailed analysis (e.g., accounts payable, accounts receivable, accrued expenses, and prepaid expenses) to back up the reconciliation.

Review and Approval: Once the reconciliation is completed, it is reviewed, sometimes by a manager, to ensure accuracy. Final reconciliations are then filed for audit purposes and future reference.

Compliance: I ensured that reconciliations are completed in accordance with company policies, accounting standards (like GAAP or IFRS), and regulatory requirements.

The goal of monthly reconciliation is to identify and resolve errors early, maintain accurate financial records, and prepare for month-end or year-end reporting.