𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝘀 𝗥𝗲𝗰𝗼𝗻𝗰𝗶𝗹𝗶𝗮𝘁𝗶𝗼𝗻

 𝗔𝗰𝗰𝗼𝘂𝗻𝘁𝘀 𝗥𝗲𝗰𝗼𝗻𝗰𝗶𝗹𝗶𝗮𝘁𝗶𝗼𝗻

Accounts reconciliation is the process of comparing and matching financial records from two sources to ensure consistency, accuracy, and completeness. It helps detect errors, discrepancies, or fraudulent activities. ✅ Key Steps in Accounts Reconciliation: 1️⃣ Gather Records: Collect relevant documents like bank statements, invoices, receipts, and ledgers. ◀️ Compare Transactions: Match transactions from internal records with external documents (e.g., bank statements). 6️⃣ Identify Discrepancies: Look for missing transactions, duplicate entries, or incorrect amounts. ✅ Adjust Records: Make corrections or investigate inconsistencies. ◀️ Verify Balances: Ensure final balances agree after reconciliation. ✅ Types of Accounts Reconciliation: 1️⃣ Bank Reconciliation • Purpose: Compare cash ledger with bank statement. • Key Focus: Match deposits, withdrawals, and balances. • Common Discrepancies: Outstanding checques, bank fees, recording errors. ◀️ Vendor Reconciliation (Accounts Payable) • Purpose: Match accounts payable records with vendor statements. • Key Focus: Ensure invoices, payments, and credit notes are accurate. • Common Discrepancies: Unrecorded invoices/payments, disputed charges. 6️⃣ Customer Reconciliation (Accounts Receivable) • Purpose: Reconcile accounts receivable with customer records. • Key Focus: Confirm customer payments are recorded correctly. • Common Discrepancies: Unrecorded payments, duplicate invoices. ✅ General Ledger Reconciliation • Purpose: Match subsidiary ledgers with general ledger. • Key Focus: Identify discrepancies in detailed accounts and control accounts. • Common Discrepancies: Incorrect journal entries, ledger errors. ◀️ Inventory Reconciliation • Purpose: Match inventory records with physical counts. • Key Focus: Detect shrinkage, theft, or errors. • Common Discrepancies: Incorrect stock levels, timing differences. 6️⃣ Fixed Asset Reconciliation • Purpose: Reconcile fixed asset registers with general ledger accounts. • Key Focus: Record acquisitions, disposals, and depreciation accurately. • Common Discrepancies: Missing assets, depreciation errors.