Thursday, 18 October 2007

How To Reconcile Have you seen this situation?

A company now has a software package called RecWizard to help you with reconciliations, but here is an approach that only requires a spreadsheet. The key is having a methodology. Rather than diving in with random adjustments, start eliminating sources of mistakes, so that you can narrow down the places to look. For example, let's say that the Accounts Receivable Aged Trial Balance (ATB) doesn't agree with the GL balance at October 31.

Hint: whenever you are comparing two columns of numbers, take the time to get them sorted in the same order so that you can see the differences easily.

Reconciliations are time wasters and frustrating no matter how good your methodology. The best cure is always prevention.
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