🎯 Learning Objectives
- Master various types of account reconciliations
- Identify and resolve reconciliation variances
- Establish reconciliation controls and procedures
- Manage reconciliation timelines and SLAs
- Mentor junior staff on reconciliation techniques
Types of Reconciliations
Account reconciliations are the foundation of accurate financial reporting. You need to master several types:
Bank Reconciliations
Match GL bank balance to actual bank statement. Key steps:
- Identify timing differences (outstanding checks, deposits in transit)
- Resolve unusual items
- Post necessary adjustments
- Verify balance matches
Intercompany Reconciliations
Match balances between entities. Most complex due to timing and exchange rates.
AR/AP Subledger Reconciliations
Match GL account to supporting subledger. Requires detailed analysis of unmatched items.
💡 Best Practice: Root Cause Analysis
When a reconciliation doesn't balance, systematically identify the root cause:
- Check for data entry errors
- Verify posting to correct GL accounts
- Look for timing differences
- Investigate system issues or duplicates
- Document all findings