Account reconciliation explains differences between ledgers and independent records so financial balances can be supported and unresolved items assigned.
Understanding Account Reconciliation Services
When to consider this service
Business owners and finance teams improving recurring accounting, reporting or administration can use this service to clarify a particular issue. A useful starting question is: “Should an unexplained difference be cleared with an adjustment?” Begin with the facts behind that question rather than assuming that a standard package will resolve it.
Scope of work
The engagement can cover the following workstreams. The proposal specifies which apply to your matter and what evidence or specialist input is needed.
- Reconcile bank customer and supplier balances.
- Analyse timing errors and unmatched entries.
- Set ownership and closure of aged differences.
Documents and information to prepare
Start with the records below where available. They help establish the facts before a more specific checklist is agreed.
- General ledgers.
- Bank statements.
- Subledgers.
- Reconciliation files.
Provide the relevant entity, transaction or reporting period and any existing notice or deadline. Identify missing or inconsistent records so they can be addressed explicitly.
A key issue to resolve
A balancing adjustment should not hide an unexplained difference; unresolved items need investigation and documented approval.
How the engagement works
- Define the question: reconcile bank customer and supplier balances, using the available general ledgers and the facts you provide.
- Examine the evidence: analyse timing errors and unmatched entries. Record unresolved information and the assumptions that affect the analysis.
- Agree the action: set ownership and closure of aged differences. Set the required deliverables, responsible owners and any follow-up or external dependency.
Deliverables, fees and timing
The proposal for Account Reconciliation Services sets out the analysis, documentation or coordination deliverables and the work you retain. The availability of general ledgers, bank statements, subledgers and reconciliation files affects readiness and the amount of follow-up needed. Fees and the working schedule are agreed after that initial assessment. Any required independent report, legal representation or authority application is identified as a separate responsibility where relevant.
Discuss your requirement
Share a short summary of your Account Reconciliation Services requirement and the records already available. BIATConsultant can assess the proposed scope and explain the next steps.
FAQ
Practical questions about Account Reconciliation Services.
Should an unexplained difference be cleared with an adjustment?
A balancing adjustment should not hide an unexplained difference; unresolved items need investigation and documented approval.
What records should I prepare for Account Reconciliation Services?
What can the scope of Account Reconciliation Services include?
How are fees and the schedule agreed?