Reconciling month-end

Overview

Developing precise procedures for reconciliation should be a top priority for every company. It is a guarantee that your reports are accurate and that your data is in balance. 

As a best practice, Axium recommends that you reconcile monthly. First, determine if your Trial Balance report is in balance and then balance each of the control accounts to the Trial Balance report.

Through normal workflow, Ajera keeps the subsidiary ledgers and control accounts in balance. For example, when you print vendor checks, an entry is made to the Accounts Payable control account to reduce the balance by the total of the check. However, if you entered the amount of the check as a debit to the Accounts Payable account in Manage > Journal Entries, then your Accounts Payable subsidiary ledger (Vendor Invoice Aging report) would no longer be in balance with your Accounts Payable account on your Trial Balance report.

Follow a work plan

1. Determine if your Trial Balance report is in balance and then balance each of the control accounts to the Trial Balance report.
2. To reconcile Ajera, follow these steps:

• Step 1: Reconcile the trial balance.
• Step 2: Reconcile cash accounts.
• Step 3: Reconcile accounts receivable.
• Step 4: Reconcile prepayments.
• Step 5: Reconcile work-in-progress accounts.
• Step 6: Reconcile accounts payable.
• Step 7: Reconcile salaries payable.
• Optional step: Reconcile gross wages for accrual accounting.

Learn the details

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Step 1 - Reconcile the trial balance

Step 2 - Reconcile cash accounts

Step 3 - Reconcile accounts receivable

Step 4 - Reconcile prepayments

Step 5 - Reconcile work-in-progress accounts

Step 6 - Reconcile accounts payable

Step 7 - Reconcile salaries payable

Optional step - Reconcile gross wages for accrual accounting

Test your knowledge

Quiz: Reconciling month-end

Next

Lesson 3: Data review and validation