Reconciliation

Reconciliation refers to the process of ensuring that two sets of records are in agreement. Reconciliation is used to ensure that the money leaving an account matches the actual money spent at the end of a particular accounting period. Randolph Business Resources completes monthly, quarterly, and annual reconciliations for financial statements, depending on the need of the client.

A company’s general ledger account records all the transactions involving the company’s checking account. Each month, the bank will send a statement listing the activity in the account during the previous month as well as the balance in the account at the time of the statement.  Reconciling the statement to the general ledger can be a complicated process because items may not clear the bank in the same month as they are recorded in the general ledger or checkbook.

It is important to do a reconciliation for your credit card statements each month as well. With a large number of transactions, you could easily miss a transaction that gets processed twice in error, or instances of identity theft and fraud.

Finally, balance sheet reconciliation ensures that each account is reviewed and updated regularly. This affects the financial stability of a company and can impact future resources.

Reporting based on this work is tailored to each client and produced as often as required (in many cases monthly).  We stand behind each reconciliation and are happy to attend meetings with banks, loan officers, tax representatives, and more should a question arise.