How do you reconcile a general ledger account?

To complete a general ledger reconciliation, accountants typically follow these steps:

1. Obtain necessary details of the general ledger account.
2. Reconcile ending account balances to supporting documentation.
3. Investigate discrepancies.
4. Prepare adjusting journal entries, if necessary.
5. Accuracy.
6. Prevention.
7. Adjustments.

What general ledger accounts should be reconciled?

Not every general ledger account has a detail subsidiary ledger to reconcile to. Monthly all balance sheet accounts should be analyzed for accuracy. In addition, periodically it may be necessary to reconcile revenue accounts, expense accounts and miscellaneous balance sheet accounts.

What is reconciliation of ledger accounts?

General ledger reconciliation is the process of comparison between accounts and data. Those tasked with the process will have to verify the books against other financial documents like statements, reports, and accounts. The reconciliation policy serves as a form of internal control.

What is GL reconciliation process?

General Ledger (GL) reconciliation is an accounting process aimed at ensuring the compliance and integrity of an organisation’s books of account. It contains a number of general ledger accounts, which contain records of every financial transaction conducted by a business.

Why do you perform subledger to GL reconciliation?

The general ledger would not contain detail for each individual transaction. As there is always opportunity for a human mistake, it is important to reconcile the general ledger balances to the sub-ledger balances on a periodic basis to spot such mistakes.

How do you perform a reconciliation?

Here are the steps for completing a bank reconciliation:

1. Get bank records.
2. Gather your business records.
3. Find a place to start.
4. Go over your bank deposits and withdrawals.
5. Check the income and expenses in your books.
6. Adjust the bank statements.
7. Adjust the cash balance.
8. Compare the end balances.

How do you prepare a general ledger to a subledger reconciliation?

How to prepare general ledger to sub-ledger reconciliation

1. Step 1: Compare G/L balance to the sub-ledger balance.
2. Step 2: Investigate reasons for the difference.
3. After you have compared the G/L and sub-ledger and found modifications, you must investigate reasons for them.
4. Step 3: Adjust G/L and/or sub-ledger.

What is an example of general ledger?

Example of a general ledger All financial activities in your business are recorded in the general ledger.

What is general ledger balance?

General Ledger Balance. A general ledger is a document that records all of the financial transactions for your business in one place, providing a running history or your transactions. Each time you make a debit entry in the general ledger, you make a corresponding credit entry. For example, if you pay a $10,000 invoice,…

What is a general ledger template?

General Ledger Template A general ledger template is an account or record used to sort and store balance sheet and income statement transactions.

What is a checking account reconciliation?

Account reconciliation involves making sure the amount of money in a checking account is accurate when compared to bank records. When managing a household budget, the family should sit down an reconcile their accounts at least once a month.