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Odoni Partners LLC - Certified Public Accountants > News > Uncategorized > What Does Account Reconciliation Mean?
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The best tax accountants in Chicago from Odoni Partners understand the benefits of account reconciliation and instances where it is necessary. We use careful attention to detail while studying your financial statements in the reconciliation process.

What Is Account Reconciliation?

Account reconciliation occurs when someone compares their company or business’s internal financial records to their external monthly statements. The purpose is to spot any mistakes or things that do not match up as they should. Not all companies can perform the task themselves or in the time frame required, so they turn to expert accountants with the software, experience, and tools to help.

When Is Account Reconciliation Necessary?

A business should know the details of its cash flow and accounts payable, so account reconciliation is a critical step in getting everything in order. You should know why, where, and when your money is spent and ensure that your purchases are correct. Catching issues like fraud, overdrafts, or overcharges sooner are better because you can try to resolve the issue quicker.

Account reconciliation can help save you money in the long run because it assures a correct balance sheet. A professional accountant can help you the best with this task.

Methods of Account Reconciliation

There are two primary methods to perform this process: analytics review and documentation review. Individuals should utilize these methods (either for themselves or their business) regularly in a routine manner to keep their finances in order.

1.    Analytics Review

This method analytically reviews account history to predict the current account amount. If there is a big difference between the two, it might be a sign there are errors to fix in the records.

2.    Documentation Review

This method involves reviewing financial documents to make 100% certain the money recorded matches up with the money spent. People most often use accounting software for this method.

Steps in Account Reconciliation

After a financial period ends, the account reconciliation process begins:

  • Accountants check each general ledger account to confirm an accurate and verified balance. They can compare third-party data, independent systems, credit card statements, and bank statements to the ledger balance to spot and note any discrepancies.
  • Accountants investigate issues and address them before moving forward. They store everything performed, including account balances and correction of errors for auditing and reference.

A company cannot verify its financial integrity until the completion of account reconciliation.

Assistance From Professional Accountants

While you may try account reconciliation yourself, there is no better place to receive help than from Odoni Partners, LLC. We can expertly detect discrepancies within your financial records with our team of experienced accountants. We serve Wheaton, IL, and Chicago, IL, and look forward to assisting you.

Odoni is also aware of and can help with the changes in tax filing requirements for large corporations. Our services include small business accounting, tax preparation and planning, and individual taxes.

Contact us at our head office today at (312) 440-0960 for account reconciliation with our accounting experts.