Blog Post
Best Practices for Month-End Reconciliation Reporting
The job isn't done when the numbers match. The job is done when the report is signed, sealed, and audited. For CFOs, the quality of reconciliation reporting is a direct indicator of the health of the finance function. Sloppy reports lead to audit findings; standardized, transparent reports lead to confidence.
The Anatomy of a Perfect Reconciliation Report
Whether you are using Excel or software, every reconciliation report must answer three questions:
- What is the balance? (GL vs. Source)
- What explains the difference? (Reconciling Items)
- How old are the differences? (Aging)
Best Practice #1: Explain, Don't Just List
A list of 50 variance amounts is useless to an auditor. Each reconciling item needs context.
Bad: "Variance: $500"
Good: "Check #1045 to Vendor X - Issued 1/28, Outstanding at Month End."
Best Practice #2: Monitor "Aging" Obsessively
The most dangerous items on a reconciliation are the old ones. An unreconciled item from 6 months ago isn't a timing difference; it's likely an error or fraud.
Implement a policy: "No reconciling items older than 60 days." Force a write-off or resolution.
Best Practice #3: Segregation of Duties
The person preparing the reconciliation cannot be the person approving it. This is a fundamental internal control.
Reconwizz enforces this digitally. You cannot "Approve" your own work. The system stamps the report with the Preparer's ID and time, then routes it to the Approver, creating an unshakeable audit trail.
Dashboarding for the CFO
Executives don't want to read individual recs. They need a dashboard.
Modern tools provide a "Command Center" view showing:
- % of Accounts Reconciled
- Total Value of Unreconciled Items
- Number of High-Risk Accounts Open