RECONCILIATION OF BALANCE SHEET ACCOUNTS
Reconciliation of Balance Sheet accounts provide a number of important services to company management. These include detecting and preventing fraud, testing internal control, and monitoring compliance with company policy and government regulation.
Balance Sheet account reconciliation is one of the key elements to closing the financial books. Reconciling the Balance Sheet is very important for a business; it confirms and ensures that everything on the Balance Sheet is accurate. Business owners need an accurate Balance Sheet to clearly understand the company's financial position.
Every account on the Balance Sheet needs to be reconciled when an accounting period is being closed; this ensures accuracy of the data.
Some of the most important accounts that need to be reconciled are the cash accounts, inventory, prepaid expenses, accounts receivable, and accrued liabilities.
Performance of a monthly Balance Sheet reconciliation is crucial to understanding and evaluating the financial position of a business.
With the year end quickly approaching, call Audit Hotel to have an independent, qualified expert perform a year end reconciliation on the Balance Sheet accounts of your company.