Field Notes
What belongs in a quarter-end reconciliation file
A reconciliation that “ties” but cannot explain its reconciling items is only half done. During readiness audits we open the folder and look for a story a second person can follow without calling the preparer.
Minimum contents
- Cover sheet with account name, period end, preparer, reviewer, and tie-out to the trial balance
- System report or sub-ledger extract used as the starting point
- List of reconciling items with amounts, dates, and expected clearance
- Source documents for items above your own materiality threshold
- Sign-off dates that sit before management lock, not after
Age still matters
Items older than sixty days deserve a sentence: why they remain, who owns clearance, and whether a provision is under discussion. Silent ageing is one of the fastest ways a tidy recon loses credibility.
Common thin spots
Bank reconciliations missing outstanding cheque lists; AR recons that bury credit balances; AP recons without goods-received or not-invoiced schedules. If you know a thin spot exists, flag it in intake — we would rather plan sample time there than discover it on day five.
A reconciliation deep dive is useful when only a few accounts need this treatment before the full close.