If you are looking forward to learn, how to prepare general ledger to sub ledger reconciliation? Just click here for the process. Bank reconciliation statement templates are also added here to point out mistakes and therefore keeping your financial documents updated with the authentic data. Analyzing difference between different accounts is now easier though these recently added accounts.
We have already added different reconciliation sheets here so you are well aware of the purpose however, for those who are unknown of the term reconciliation; it is basically a procedure of observing mistakes between different accounts and correcting them to prevent any major mistake in the financial documents of the company. The financial sheet shows the profit and loss amount annually or for any specific time period.
How To Prepare General Ledger To Sub Ledger Reconciliation?
Cash book with loan ledger can also help you during preparing in it. Automatically template is available in MS excel spreadsheet with some more addition like Gantt chat and other time line template for controlling accounts monthly basis without any tension.
General ledger shows the amounts and balance of each company individually therefore all transactions are recorded in the general ledger however; sub ledger is prepared on the basis of general ledger.
During posting any human error is a cause of making difference between the amounts and therefore wrong posting on the documents. For reconciliation compare both the sheets and accounts.
Causes for Dissimilarity
If there is a difference in the balance, it means some type of mistake has been made. it can be due to missing of any account or any information on the sub ledger or incorrect entries in the sub ledger account which have not actually occurred.
Correcting the Error
Some error are required to be subtracted as they are showing more amount while others are required to be add in the sub ledger and less amount has been recorded. Therefore, make adjustments in these amounts. Once you have done it, observe the sheet once again so that any mistake can be observed at this point through our guide for reconciliation.