Company owners sometimes ask me: “Should balance adjustments arising from account reconciliation problems cause me any concern?”
In my experience and opinion, accounts should reconcile–right down to the penny–almost all of the time!
The account reconciliation process is just a large matching game where you match your accounting entries to the bank’s entries, and then you list and review the non-matching items, such as the outstanding checks and deposits that are left.
Once or twice a year, if you’re off a small amount, such as $.01 to $5, and you have $1.00 or more checks clearing, in the interest of using your time effectively, it’s acceptable to post an entry to Miscellaneous Office Expense for the minimal unreconciled differences.
If you find that your accounting assistant regularly has small, unresolved differences, be vigilant and let him or her know that you are reviewing the account reconciliations closely. If you see large unresolved differences, follow-up immediately!
Regards – Diane Gilson
Copyright: Diane C.O. Gilson, Info Plus ( + ) Accounting®