One such useful resource to reconcile accounts is -QuickBooks. But, organizations often find it difficult while carrying this out due to inexperience and end up hiring experts for a task that can be completed with a little help and consistency, and without paying more. If any discrepancy is found, the image of the organization in financial matters is tarnished and it may lead to legal issues. The main objective of carrying out reconciliation is to remove financial inconsistencies among the general ledger and the financial statements before any external auditor carries out the financial audit. The difference in date of the receivable report used to obtain the general ledger. Bill was posted in any other account rather than a trade receivable account.A sales ledger bypassed entry which was made into the general ledger account.Probable causes of mistakes in Receivable Reconciliation: This is done preferably on a financial year’s end to remove any inconsistencies present in the statements before the audit. Reconciliation means matching and when the accounts are matched for the unpaid customer billings to the receivable amount mentioned in the general ledger, the process is called an account receivable reconciliation. If that’s account payable reconciliation, what is account receivable reconciliation? The reporting period of the general ledger is incorrect.Printing of old accounts payable report was done before the posting was completed.Improper posting of the accounts payable journal in the general ledger.Probable causes of mistakes in payable Reconciliation: This particular action of tallying the data can be rephrased as account reconciliation, and it helps in amount verification, ensuring the balance sheet is correct. The total accounts payable is cross-checked with the payable account ledger by the accounting staff or experts just before closing the books of every reporting period. Thus account maintenance and reconciliation become quintessential for a business, as a slight error may entice penalty or even suspension. Even if there is a slight discrepancy in the ledger like a mismatch between account balance and all accounts payable, the organization has to suffer the brunt of legal action with a threat of their survival in times of pandemics. At the end of every quarter, companies need to ensure that their ledgers are correct and up to date. Accounts are the most formidable nemesis of any company if the employees are doing it wrong.
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