Effective management of account reconciliation activities greatly increases executives’ ability to proactively identify and resolve issues that could result in misstatements in financial accounting and reporting records and lead to substantial write-offs. This article explores common, recurring problems with account reconciliations and the practices that can improve their effectiveness and efficiency.
Many common account reconciliation problems are preventable. By creating and putting in place appropriate reconciliation and information management processes, and improving organization, training, and automation, companies can gain assurance over their general ledger balances.
