In this definition
Which records are compared?
Reconciliation covers bank, credit-card, payment-processor, marketplace-settlement, balance-sheet, intercompany and subledger-to-general-ledger reconciliations.
Resolve the reason for a difference
Differences can arise from timing, missing entries or errors. Keep the source record, explanation and any reviewed adjustment together. A matching total alone does not replace checking the supporting transactions.
Common questions
How Do You Reconcile a General Ledger?
General ledger reconciliation involves comparing subsidiary ledgers to general ledger control accounts to ensure accuracy. The process includes verifying that accounts payable subsidiary ledger totals match the AP control account, accounts receivable details align with the AR control account, and all journal entries post correctly.
What Is General Ledger Reconciliation?
General ledger reconciliation is the systematic process of verifying that all account balances are accurate and complete. This involves matching supporting documentation to ledger entries, ensuring subsidiary ledgers equal control accounts, and confirming that debits equal credits. The reconciliation process identifies discrepancies, posting errors, and missing transactions before preparing financial statements.