Balance Sheet Reconciliation is a crucial financial process conducted to ensure the accuracy of a company's financial statements. It involves comparing the recorded balances in the company's balance sheet accounts with external statements, supporting documents, or sub-ledgers. For instance, reconciling the cash account would involve comparing the balance per the accounting system to the bank statement.

The process of Balance Sheet Reconciliation helps in identifying discrepancies such as unrecorded transactions, errors, or fraudulent activities. Once identified, these discrepancies need to be investigated and resolved immediately. For example, during month-end, the accounts payable account is reconciled to ensure that all supplier invoices have been properly recorded and accounted for.

This procedure is essential not only for preparing accurate and reliable financial statements, but also for meeting regulatory and audit requirements. Tools like the Easy Month End software simplify and streamline Balance Sheet Reconciliation, helping finance teams maintain accurate and timely accounting records.