Record to report / R2R – Reconciliations


We discussed the confusions created by debits and credits in reconciliations in our last post.

There surely has to be a better way to do this, and it should be simple as well to be effective.

Well, the first key thing to note is the balance with which you are starting, for example, for a bank reconciliation it could be the bank balance or it could be your books (your client’s or your principal’s)

The next step will be to identify various items of difference. At this stage it is important to note that we are not trying to identify the differences in the two balances by summing up / otherwise the amounts of the individual transactions. We are just listing as many items constituting the differences in the balances.

Reconciliations are all about identifying and explaining the differences. It will usually be a multi iterative process.

Next post I will share this simple procedure for reconciliation…



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