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Account Reconciliation checklist
Preparation and Planning
Gather all relevant account documentation including previous reconciliation reports, bank statements, and ledger entries.
Ensure access to accounting software and financial systems is available and functioning.
Review the reconciliation policy and procedures to ensure compliance with internal controls and regulatory standards.
Execution of Reconciliation
Compare the balance of the account in the ledger with the corresponding balance in the bank statement or other financial records.
Identify and investigate any discrepancies, noting all differences that require adjustment or further review.
Prepare adjusting journal entries to correct any errors found in the account balances or to record transactions not yet posted.
Review and Verification
Examine all reconciling items and adjusting entries to verify accuracy and completeness.
Ensure all transactions are properly authorized and supported by appropriate documentation.
Review the reconciled account balances to ensure they are reasonable and explainable.
Documentation and Sign-off
Compile a reconciliation report that includes the reconciled balance, a summary of adjustments, and any outstanding items.
Obtain approvals and sign-offs from the designated personnel or management responsible for the reconciliation.
File all documents in accordance with company policy for record-keeping and future audits.
Follow-up and Resolution
Schedule and perform timely follow-up on all outstanding reconciling items until they are resolved.
Communicate with relevant departments or individuals to clarify and resolve any issues or discrepancies.
Update reconciliation procedures to prevent recurrence of any identified issues.
