Why Do We Need Balance Sheet Reconciliation Software?
Balance sheet reconciliation software helps to automate the reconciliation of an organization's general ledger at the end of a financial period. The kind of software is designed to improve the speed and accuracy of balance sheet account recons. Balance sheet integrity software of this kind removes the dependency of spreadsheets that still exists in many organizations, improved trust in the organization's financial statement. Recons using EXCEL pose a significant financial risk.
A company balance sheet lists all assets, liabilities and capital of a company at a certain point in time.
Critically, the balance sheet of a company is used by shareholders, management bankers and investors to asses the financial situation of the company. A balance sheet is not accurate for any reason, can result in poor financial decisions. These kinds of financial decisions often can affect the future viability of the company and its staff and the more accurate the balance sheet is, the more likely that the correct decisions will be made.
To ensure that the financials of a company actually reflect the financial health of a company, a regular general ledger reconciliation process is performed. After this process has been successfully completed the books are reviewed by the company's auditors.
GL Reconciliation Resources:
1) Why is Reconciliation Important in Accounting? Read Here
2) What is General Ledger Reconciliation? Read Here