General Ledger Account Reconciliations

1
General Ledger Account Reconciliations

• Basic building blocks for good accounting
  controls
• April 19, 2005
• IIA Presentation

2
Why are account reconciliations important?

• Assure adherence to accounting policies
• Document general ledger account balances for
• Validity
• Appropriateness
• Adequacy
• Identify accounting errors that should be
  corrected

3
External Auditors Basic Process

• Review business processes
• Identify key controls
• Assess adherence to company policies and
  procedures
• Document managements control
• Validate the balance sheet

4
Making account reconciliationsa key control
process

• Teach staff the basics of preparing good account
  reconciliations
• Provide standard formats to assure consistency
  and completeness
• Have easily accessible policies and procedures
  in understandable terms
• Review and monitor and review and monitor and
  review and monitor

5
Teach good account reconciliation techniques

• Identify purpose of the account
• Provide complete descriptions of reconciling
  items
• Prepare reconciliations on a timely basis
• Make correcting entries as soon as practical
• Communicate serious errors immediately

6
Provide standard formats and/or templates

• Clearly show expectations for what information is
  necessary
• Identify the GL Balance and show that it has been
  explained and substantiated
• Clearly show who was involved in the process of
  Preparing - Approving - Reviewing

7
Procedure and policy documentation readily
available

• Policies make sure you are in compliance with
  GAAP
• Procedures make sure there is consistency in
  completing activity
• Having them available immediately during the
  reconciliation process can improve efficiency,
  accuracy and consistent compliance with your
  policies

8
Now that you have good account reconciliations
monitor regularly

• Create priorities
• Key accounts
• Non-key accounts
• Check status regularly
• Are they complete?
• Are they correct?
• Provide timely feedback to staff to improve the
  process

9
Software to help with the account reconciliation
process

• RecWizard GL Compliance Manager
• Tutorial
• Templates
• Policy and procedure documentation
• Monitoring reports
• Two versions available depending on your company
  size and number of users

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RecWizard GL Compliance Manager Professional

• Desktop version for all Windows PCs
• Can support up to 10 users per database the
  database must be accessible on your network to
  those users
• Unlimited number of databases that can be created

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RecWizard GL Compliance Manager Enterprise
Edition

• Full featured program for installation on your
  companys intranet
• Unlimited users accounts divisions
  companies
• Electronic data storage of supporting documents
• Complete process management including email
  warnings and follow up

12
FREE Trial CD at our Booth

• For more details about RecWizard GL Compliance
  Manager, contact us
• Jeff Adler, President
• Account-Reconciliations.com, Inc.
• 732.938.7000
• jeff_at_account-reconciliations.com