Adjusting balances

There can be many reasons why your transaction records may not be perfectly reconciled, here are a few:

1. Omissions: There are some transactions recorded in your account statement but not recorded in your ledger, e.g. fees.
2. Timing differences: Transactions are recorded in your account statement and ledger but at different time periods.
3. Errors: The wrong amount is recorded in your ledger different from the account statement.

When identifying errors, it’s advisable to do this with an accounting or reconciliation officer if you do not have the expertise.

When you find the error, query why it occurred. When you understand why it occurred, you can learn how to fix it or prevent it. Usually, it’ll lead you to review your money movement map to ensure all amounts are moved appropriately.

If the reason is unavoidable, move to the next step.

When you find the error and you know what to do OR if the reason is unavoidable, you can adjust the ledger balances to fix the misalignment.

For instance, if you reconcile a ledger balance and discover that there is more money in the balance than is available in your account statement, it may be as a result of fees not been deducted from the ledger balance.

To fix this, find out the number of times the fees were not deducted, and post transactions to a “@Fees” ledger balance to appropriately debit the ledger balance and reconcile its records. You can also update your map to ensure that fees are debited every time the balance receive funds to avoid reconciliation errors in the future.