What are the steps to reconcile the main book?

The alignment of the main book is a critical step to ensure that the financial activities of the organization are properly recorded so that the financial statement of the organization can trust as an accurate reflection of its financial situation. The reconciliation itself concerns the comparison of various records to ensure that the data are accurate and agreements and, if not, will bring them to agreement. Like the matching of personal check books, the alignment of the main book includes verification that all transactions of the organization have been correctly recorded during this period. Of course, the alignment of the main book is much more complicated and often computer; Yet it may be a general reconciliation of the book of a large corporation sometimes to take days. Having a checks system and balances are necessary to prevent fraud or embezzlement. Likewise, the current, permanent record of all transactions should be maintained. For example, all income should be immediately recorded and stored daily in the bank. The differences between the amounts stored in the bank and income can simply be administrative errors but mayAlso reveal fraudulent activity.

The sums of posts in subsidiaries are published on the "matching of accounts" in the main book. Entries for subsidiaries, such as payable accounts or receivables, should be compared with their support documents and the sum of the items in each subsidiary should be compared with their corresponding enrollment in the main book. There are a number of different mistakes that can be made when publishing the main book and most of them do not include fraud or embezzlement. For Examples, items can be published with the correct cash amounts, but may be transposed on the wrong account or data in the post. Thorough reconciliation of the main book should reveal these mistakes. If errors or discrepancies are found, they should not be repaired but recorded separately and published as a matching of items.

One of the most important reconciliation of the main books is cash USMSiling that compares book items with bank deposits records. Although errors revealed at this stage may be simple spiritual incorrect calculations, they should be taken very seriously; If they are not caught, they may result in incorrect inclusion of the company's financial situation in a financial statement that is completely drawn from the main book.

Another important element of the reconciliation of the main book is a compliance with an attempt that simply compares the sum of all debit with the sum of all credits. If these two sums are not the same, the accounts are out of balance and at least the error must be monitored and fixed.

In particular in a large organization, it is unwavering to wait for the preparation of the financial statements for the matching of the main book. Instead, the main book accounts and components containing books of subsidiaries should be continuously recruited when carrying out contributions, which should be reviewed and confused as often as possible. The test balance should also be considered as often as feasible,But by no means less than once a month.