Reconciling a Balance Sheet

Pauladavid
Pauladavid Registered Posts: 1 New contributor ?
Can someone explain exactly what reconciling a balance sheet consists of?.

Comments

  • Monsoon
    Monsoon FMAAT, AAT Licensed Accountant Posts: 4,071 ? ? ?
    I've no idea.
    Can you put it in context?

    A balance sheet should balance, it's already reconciled.

    A reconciliation is checking something to see that it matches (eg a bank reconciliation).

    It could be something like sanity-checking the numbers (eg. it says debtors of 100k when the business only turns over 10k a year!).

    Sorry, never heard this term before.
  • Claire321
    Claire321 Registered Posts: 209 ? ? ?
    I would explain it as reconciling the control / nominal ledger accounts to the amounts on the balance sheet.

    e.g. Reconcile the amount on creditors & debtors to the aged creditors / debtors reports.

    Reconcile cash accounts to bank statements.

    Reconcile fixed assets with the fixed asset register & physical counts.

    Reconcile sundry creditors & sundy debtors with the company records i.e. I keep a spreedsheet which details all the transactions which go through these accounts and then reconcile these to the nominal ledger & hence balance sheet to ensure they reconcile.

    I would do the same for accruals and prepayments - reconcile the balance to spreadsheets tracking these transactions.

    Hope this helps

    Claire
  • Gem7321
    Gem7321 MAAT, AAT Licensed Accountant Posts: 1,438
    Do you mean checking to see the balance sheet balances? As in top half = bottom half
  • Richard
    Richard Registered Posts: 373
    Claire321 wrote: »
    I would explain it as reconciling the control / nominal ledger accounts to the amounts on the balance sheet.

    e.g. Reconcile the amount on creditors & debtors to the aged creditors / debtors reports.

    Reconcile cash accounts to bank statements.

    Reconcile fixed assets with the fixed asset register & physical counts.

    Reconcile sundry creditors & sundy debtors with the company records i.e. I keep a spreedsheet which details all the transactions which go through these accounts and then reconcile these to the nominal ledger & hence balance sheet to ensure they reconcile.

    I would do the same for accruals and prepayments - reconcile the balance to spreadsheets tracking these transactions.

    Hope this helps

    Claire

    I would agree with this post.

    At the end of each month I produce a spreadsheet that lists all of the control account balances as per my working papers, and compare this to the balance sheet that the accounting software produces, I then investigate any differences.
Privacy Policy