account reconciliation

Adapt and innovate with a hyperconnected Accounting function and give everyone the insights and freedom to thrive by connecting your data, processes, and teams with intelligent automation solutions for accounting needs. BlackLine’s foundation for modern accounting creates a streamlined and automated close. We’re dedicated to delivering the most value in the shortest amount of time, equipping you to not only control close chaos, but also foster F&A excellence. The path from traditional to modern accounting is different for every organization.

As a business leader, you need to take full responsibility for enacting those challenges and find the right path for driving more efficiency and accuracy of account reconciliation. In fact, with the right tools and technology, it’s not uncommon to reduce the time to complete the financial close by 50% or more. Lastly, read-only access can be granted to auditors, eliminating the need to provide supporting documentation separately. This self-service approach allows auditors to view completed reconciliations and access the support they need for testing and assessing controls on their own.

What is Reconciliation?

Once the trial balance looks accurate, you can rest assured your accounts have been reconciled properly. Anytime something appears out of the ordinary, you’ll want to review the originating documents such as invoices entered to determine if they were posted properly and whether any adjustments need to be made. Reviewing your comparative trial balance is one of the most important things you can do for your business. Once these adjustments are made to the general ledger, your bank account will now be reconciled with your general ledger account.

  • Standardize, accelerate, and centrally manage accounting processes – from month-end close tasks to PBC checklists – with hierarchical task lists, role-based workflows, and real-time dashboards.
  • If you find any bank adjustments, record them in your personal records and adjust the balance accordingly.
  • Download the HighRadius Account Reconciliation Datasheet, where we cover the end-to-end automation to achieve an accurate, audit-friendly account reconciliation process of the AI native platform.
  • This is critical because any discrepancies left unaddressed could distort a company’s understanding of its financial health.

These can include such documents as invoices, receipts, and transaction statements. BlackLine and our ecosystem of software and cloud partners work together to transform our joint customers’ finance and accounting processes. Together, we provide innovative solutions that help F&A teams achieve shorter close cycles and better controls, enabling them to drive better decision-making across the company. Centralize, streamline, and automate intercompany reconciliations and dispute management.Seamlessly integrate with all intercompany systems and data sources. Automatically identify intercompany exceptions and underlying transactions causing out-of-balances with rules-based solutions to resolve discrepancies quickly. The objective of doing reconciliations to make sure that the internal cash register agrees with the bank statement.


Account reconciliation aids in financial reconciliation, ensuring that the numbers reported on the financial statements reflect the company’s true financial position. This process helps businesses identify discrepancies or anomalies that could indicate error or fraud. As a result, companies can act swiftly to rectify these issues, protecting their financial health and integrity. Balance sheet reconciliation involves comparing the balances of internal accounts against corresponding external documents.

  • While much of the account reconciliation process is handled by accounting software, it still needs to be done.
  • Create, review, and approve journals, then electronically certify, post them to and store them with all supporting documentation.
  • The bank reconciliation ensures your bank account ending balance matches the balance reflected in your general ledger.
  • However, in the case of employing a reconciliation account that can’t be automated, it will be a problem.
  • The uploading user’s name and the date and time is automatically recorded with the attachment, and no one else can edit information.
  • If you use double-entry accounting in your business, you need to do account reconciliations monthly.
  • This article elaborates on reconciliation meaning in accounting, account reconciliation process and tips to carry out reconciliation activities accurately and on time in detail.

The goal of the account reconciliation process is to ensure cash inflows and outflows (debits and credits) always correspond. For example, when your company makes a sale, it will debit cash or accounts receivable (AR) on your balance sheet and credit revenue on your income statement. Conversely, when your company makes a purchase, the cash used would then be recorded as a credit in the cash account and a debit in the asset account.

Chapter 4: How To Choose The Right Automated Account Reconciliation Software?

This is a statistical approach that will help you find out if discrepancies between accounts are because of human error or potential theft. That’s why many organizations turn to accounting software to handle this so they can instead focus on more strategic priorities. A company may issue a check and record the transaction as a cash deduction in the cash register, but it may take some account reconciliation time before the check is presented to the bank. In such an instance, the transaction does not appear in the bank statement until the check has been presented and accepted by the bank. Take my word for it, you don’t want to skip this process, even for a single month. The bank reconciliation ensures your bank account ending balance matches the balance reflected in your general ledger.


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