Basic Accounting Principles - University of California ...精品分析.pptVIP

* 1. Definition of a Reconciliation 2. Importance of a Reconciliation 3. When to Prepare a Reconciliation 4. Items Needed to Prepare a Reconciliation 5. Key Terms 6. Example of a Reconciliation 7. Reconciliation Instructions 8. Approval and Submission 9. FAQs * In accounting, Reconciliation refers to the process of ensuring that two sets of records are in agreement. Reconciliation is used to ensure that the transactions going through an account match the actual money spent. The objective is to report the correct amount in the general ledger. This is done by making sure the balances match at the end of a particular accounting period. For example, we reconcile the balance in the general ledger account?”Cash “ to the balance shown on the bank statement. * Two Records - A proper reconciliation requires obtaining all of the activity in two records (department sub-ledger and the general ledger) since the last time they were reconciled and comparing them to find where any difference(s) occur. Difference in Two Records - A difference between the two records can highlight a posting error within your department; internal entities, such as Payroll or Disbursements; external entities, such as the bank or loan company; or even something much more significant: fraud. * Timeliness- It is best practice to reconcile an account monthly, following month-end close. If the account has been reconciled monthly, then only the activity in the last month must be reconciled. If the account has not been reconciled monthly, you will need to reconcile back to the last month that it had been reconciled. If you cannot locate a reconciliation for the account, you should complete a reconciliation for the current fiscal year. Reconciliations are much easier to do, and differences are easier to resolve, if they are done monthly. Doing reconciliations monthly will save time and effort and any corrective action can be taken to resolve issues. Submission - General Accounting requires