Hi,

Does someone knows how a Balance sheet reconciliation is prepared ?

Thank you in advance

For businesses, it is vital for balance sheets to be reconciled at the end of a period, usually either a month, quarter or year. This balance sheet reconciliation is part of the closing process. It is important because it helps to identify any errors before closing. Balance sheet reconciliations are one method of making sure account information is accurate and thorough. It will ensure there are no mistakes in information for the purpose of records.


In balance sheet reconciliation, the general ledger trial balance of the account is compared to another source. The other source could be internal (like a subledger) or external (like a bank statement). Differences resulting from transaction timing (like outstanding checks) are labeled as reconciling items.

When an account is reconciled on a balance sheet, several different detail ledgers are utilized. Cash accounts are generally reconciled against bank statements, and accounts payable and accounts receivable are usually reconciled against aging schedules. Both fixed assets and inventories are reconciled against physical counts.


When starting a balance sheet reconciliation, it is important to note reconciling items under the corresponding balances and then label them. The trial balance should be above the column. The next column should have the balance it will be compared to. When you make sure that the total of the both columns is equal, then the account is completely reconciled.


With balance sheet reconciliations, it is important to make sure to compare the trial balances of both payables and receivables with the respective aging schedule balances. Once they are equal, you are free to then reconcile the next account. The aging balances and trial schedules should always be compared initially.

In situations where the trial balance is more than the balance of the aging schedule, it is most likely caused by entries placed directly to the general ledger instead of the subledger. It is important to analyze any of these entries and then relocate them to the subledger. The amount of the difference should help you with your balance sheet reconciliation.

Prepare a statement of Cash Flows for reconciling balance sheets of two periods.

How about a link instead of plagarism:
What Are Balance Sheet Reconciliations? | eHow.com (http://www.ehow.com/about_4826544_what-balance-sheet-reconciliations.html)

How about a link instead of plagarism:
What Are Balance Sheet Reconciliations? | eHow.com (http://www.ehow.com/about_4826544_what-balance-sheet-reconciliations.html)

What is wrong with copying paraghraghs from a useful site and paste it here? I think it will be easier for the one who asked the question to see the answer directly. Moreover, we are not here to point fingers at each others in this forum. What I did is that I answered a question. It is not important from where I copied it or from where I took it. What is important is that I have answered the question right. So please don't keep following up on people answers' and criticizing them.

What is wrong with copying paraghraghs from a usefull site and paste it here? I think it will be easier for the one who asked the question to see the answer directly. Moreover, we are not here to point fingers at each others in this forum. What i did is that i answered a question. It is not important from where i copied it or from where i took it. What is important is that i have answered the question right. So please don't keep following up on people answers' and criticizing them.

Ethically your action is wrong. You may post copyright materials but in all fairness please quote the source. This helps the readers to verify from the source and get additional information.

There is no finger pointing involved here. It is just to keep the records straight.

Please do not get annoyed. You committed a mistake and you should be bold enough to accept it.

It was not my intention to just be "critical" for the fun of it, nor was I policing the threads. I just happened to find that when I did a Google. That work belonged to someone else. The name is even there where it came from. You posted as though you wrote it. If you had done that to me, I'd be pretty ticked off. Like I write game reviews. If someone on here asked what you thought of xyz game, would you just copy in my review?

So either quote it and give credit, or give a link to it. I've done it accidentally also, but have also removed it when found.

People on the internet always think everything out there is theirs for the taking just because it's on a public site. It was an article, just like those in a magazine. I do not understand that attitude.

I agree with you.But the person who is being accused off plagrism does not seem to have any bad intention,I think he was tryping to be helpful in a simple language but unknowingly made the mistake o not revealing the sourse.

The thread is old so I don't see the relevance of your post.

I never claimed it was done intentionally. I even said I've done it by accident myself without thinking, and I removed it. The poster only needed to quote the source or remove it, and be done with the issue, just like I've fixed mine as well. It it obvious from his arguing with me about it that he did not find anything wrong with it, even once the error was pointed out.