Accountant how-to
How to Reconcile a Balance Sheet Account
Reconciliations prove each balance is supported and accurate.
Quick answer
Reconciliations prove each balance is supported and accurate. In short: pull; gather; compare, then complete the remaining steps below.
Step by step
Pull the general ledger balance as of period end.
Gather supporting detail such as subledgers, statements or schedules.
Compare the two and list reconciling items.
Investigate and resolve unexplained differences.
Record any correcting entries.
Document the reconciliation with support and sign-off.
Have a reviewer approve it.
Safety reminders for accountants
- Maintain independence and objectivity, especially in audits
- Protect confidential financial and taxpayer data
- Follow professional ethics codes such as the AICPA Code of Professional Conduct
- Report suspected fraud through proper channels
Key terms
GAAP · FASB · Accrual accounting · Financial statements · Audit · Internal controls: see the full accountant glossary.