Common Reconciliation Errors
Discover the most common errors that occur during reconciliation and learn how to avoid them. Ensure your books are accurate and consistent with step-by-step guidance.
About Reconciliation Errors
Reconciliation errors occur when the balances in your company’s books do not match with external records like bank statements, vendor accounts, or credit card statements. These errors can arise due to missing entries, incorrect amounts, duplicate postings, or delayed transaction recordings.
Identifying and resolving reconciliation errors promptly is crucial. Unresolved errors may lead to financial misstatements, tax compliance issues, and even cash flow problems.
Common reconciliation errors include unrecorded checks, incorrect journal entries, bank fees not recorded in books, or timing differences. A strong internal control process ensures such errors are detected early and corrected effectively.
