Reconciliations are a fundamental accounting process to check for accounting errors or fraudulent activity within your business accounts.
Matching your internal financial accounting records to supporting records or performing analytical reviews of your accounts at regular intervals are opportunities to check this.
Points to ponder:
- Have you got reconciliations in place at regular intervals to perform these checks?
- How accessible is information to perform accurate and efficient reconciliations?
- Do you have a regular analytical review of your accounts?
- Do all stakeholders in your business have a similar view of the importance of reconciliations and review?
The adage of “garbage in, garbage out” still holds true. You constantly need to ensure that you do not have “garbage” in your system causing incorrect data leading to incorrect decisions.
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