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What is the difference between a GL account and a reconciliation account?

Account reconciliation is a primary internal control that maintains the accuracy of a companys general ledger (GL) and detects fraud. Bank reconciliation is the most common type of account reconciliation, but all GL accounts can benefit, especially assets, liabilities and equity accounts.

How do you reconcile a bank statement to a general ledger?

Monthly reconciliations are the process of comparing your financial records, such as your bank and credit card statements, to your accounting records to ensure that they match. Reconciling your accounts on a monthly basis, you can identify errors and discrepancies early and avoid costly mistakes.

What is a monthly general ledger?

Share. Email Twitter Facebook Linkedin. A general ledger is a record of a companys income, expenses, assets, liabilities, and equities. In most cases, a general ledger is broken down into accounts, account balances, and financial transactions and sometimes further broken down into sub-ledgers.

What is monthly reconciliation of general ledger accounts?

Reconciling your bank statements simply means comparing your internal financial records against the records provided to you by your bank. This process is important because it ensures that you can identify any unusual transactions caused by fraud or accounting errors.

What does general ledger reconciliation mean?

General ledger reconciliation is the process by which business accountants verify that the information in the general ledger is accurate. A general ledger is an accounting record that compiles all financial transactions and balances for a business.