This general ledger reconciliation template in Excel enables finance and accounting teams at tech companies to:
• Clearly call out discrepancies on the balance sheet by documenting variances in account balances. This ensures that reconciling items are easily identifiable, facilitating timely resolution and enhancing the accuracy of financial statements.
• Confidently report financial results, knowing that their data is reliable and supported by thorough reconciliations.
• Support robust internal controls through segregation of duties to ensure that no individual has control over all aspects. This reduces the risk of collusion and fraud while enhancing financial integrity.
Download this general ledger reconciliation template for Excel
How to use this GL reconciliation template in Excel
Step 1: First, update the date and G/L balance using a G/L balance query from your accounting system. Then gather the latest bank statements, subledgers, and other independent source documents.
Step 2: Next, specify the items that make up the independent source balance. Compare the source and G/L balances to see if they tie and itemize reconciling items, if any.
Step 3: Present reconciling items with dates and corrective action, noting general ledger accounts impacted by the variances.
Benefits of this GL reconciliation template in Excel
Standardized Format for Consistency
This GL reconciliation template in Excel simplifies the process with a standardized format that ensures consistency across all reconciliations. Whether you're reconciling cash, fixed assets, or any other general ledger accounts, the template provides a uniform structure that ensures all account activity is captured.
Clear Identification of Reconciling Items
A big pain point with account reconciliations is having a variance and not knowing why, which means you'll struggle with identifying reconciling items. Unidentified reconciling items create financial risk as the company is unable to account for a portion of its assets, liabilities, or equity. This GL account reconciliation template in Excel clearly highlights variances between the source and GL balances, enabling proactive responses to resolving reconciling items.
Compliance with SOX Requirements
Having dedicated spaces for the reconciler and reviewer signatures ensures compliance with Sarbanes-Oxley (SOX) requirements. SOX mandates rigorous internal controls, which are processes put in place to ensure the integrity of financial data. The GL reconciliation template demonstrates that reconciliations have been properly prepared, reviewed, and approved by management in accordance with regulatory standards.
Organization of Source Documents
When reconciling balance sheet accounts, a general ledger account can have multiple source documents. The key is that the source documents must be independent—meaning maintained, verified, and/or provided by a third party. The template encourages the organization of individual source documents, which enhances transparency in account activity. By keeping all supporting documentation well-organized and accessible, accountants can provide clear evidence of transaction dates, amounts, and sources.
Transparency with Stakeholders
Account reconciliations are commonly requested by internal and external auditors. The organized and consistent template format allows stakeholders to quickly understand the reconciliation process and results, facilitating smoother communication and decision-making. Providing clear and concise reconciliations supports effective governance and oversight.
Download this general ledger reconciliation template for Excel
FAQs
How frequently should I use GL account reconciliation templates?
You should use a GL account reconciliation template each time you reconcile or review accounts. Once you use the template, you establish a repeatable process by saving a copy and updating it for the current month's activity.
What kinds of discrepancies are the most common?
The most common reconciling items are timing differences where transactions are recorded in the general ledger or source document but not both. Transactions recorded to the wrong general ledger accounts also create reconciling items as they must be reclassified to the proper general ledger accounts.
Is a sub-ledger considered an independent source document?
A subledger is an independent source document although it's produced within the company. Its transactions can be traced back to customer records or bank statements, which are independent sources.
Why do auditors ask for account reconciliations?
Account reconciliations are an integral part of an internal control framework to protect the integrity of financial reporting. They provide a simple way to detect errors and/or fraud in financial statements and often are the starting point for uncovering these issues.
What should I do if I see suspicious activity in an account reconciliation?
Any suspected discrepancies in general ledger reconciliations should be immediately reported to management, who will determine the best course of action to resolve the issue.
Download this general ledger reconciliation template for Excel
Limitations of this general ledger reconciliation template
This GL reconciliation template in Excel supports accounting teams that have simple or low-volume account reconciliations. As account activity grows in complexity or volume. larger Excel files occupy more space in your cloud, take longer to load, and easily crash. Using Excel limits automation functions, increasing completion time and risk of errors, and it becomes more difficult to sift through activity and identify reconciling items.
Automated general ledger reconciliation tools allow for efficient oversight of account activity and access to real-time bank feeds and subledger integrations.
