Performing balance sheet reconciliations
Investigate and resolve differences between GL and supporting balances.
Understanding Variances
A variance occurs when the GL balance doesn't match the supporting balance. CloseFlow automatically calculates the difference and flags reconciliations that exceed your configured threshold.
Reconciling
Follow these steps to reconcile a flagged item.
- Open the flagged reconciliation.
- Input the Reconciled Balance.
- Review the difference between the Book Balance and the Reconciled Balance.
- Variance explanations are required for differences exceeding the materiality threshold set up in Organization Settings.
- Add any necessary attachments in the Supporting Documents section.
- Once all items are added and the net difference is zero (or within threshold), submit for review.