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Balance Sheet Reconciliation Guide

The reconciliation process involves reviewing open items in balance sheet accounts to validate their status and ensure they are cleared. Supporting documentation, such as invoices and bank statements, is necessary to verify the accuracy of account balances. Finally, the reconciled balances and open items must be approved by relevant stakeholders to address discrepancies and ensure compliance with financial standards.

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240 views1 page

Balance Sheet Reconciliation Guide

The reconciliation process involves reviewing open items in balance sheet accounts to validate their status and ensure they are cleared. Supporting documentation, such as invoices and bank statements, is necessary to verify the accuracy of account balances. Finally, the reconciled balances and open items must be approved by relevant stakeholders to address discrepancies and ensure compliance with financial standards.

Uploaded by

kotnala.nivas
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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The process involves:

1. Reviewing Open Items: Open items refer to transactions or amounts in the balance sheet
accounts that have not been settled or cleared. These could include pending invoices,
accruals, or unmatched payments. The reconciliation process involves reviewing these
open items to determine if they are valid and ensure that they are appropriately cleared
or aged.
2. Supporting Documentation: All balance sheet accounts should be supported by relevant
documents such as invoices, bank statements, contracts, or other transaction records.
This documentation is used to verify that the balances in the accounts are accurate and
in line with the company's operational activities.
3. Approval: After completing the reconciliation, the balances and the open items must be
reviewed and approved by relevant stakeholders. This ensures that any discrepancies or
pending items are addressed, and the reconciliation process is formally validated.
Approvals can come from finance managers or senior accountants who are responsible
for overseeing the process and ensuring compliance with financial reporting standards.

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