3 Key Tools to performing account reconciliations

as a leader I have reviewed my share of balance sheet account reconciliations and I would like to share, 3 things I have found to be key and relevant to performing monthly account reconciliations.

​1. It starts with understanding that performing an account reconciliation is not just about copying and pasting the transaction data into the reconciliation. The accountant needs to massage the data and be able to explain the actIvity.
​2. pay attention to the transaction detail. transactions that net to zero should not show as a representation of the account balance. only line items which make up the ytd (year to date) balance should be listed on the reconciliation.
​3. actually deliver a reconciled account. Meaning, During this process the accountant takes the necessary time perform An analysis and understand the details behind each transaction. often accountants are not providing the details and management is left with uncertainty of what's in their financial statements and how to relay the information to auditors.

side note: a professional who understands their career industry and can think outside the box is a key asset to any team.