Definition: A fundamental accounting process that confirms an entity’s account balances are correct and consistent. It involves comparing internal financial records against external statements or supporting documentation to verify that every transaction is accounted for and that the final balance is accurate at the end of a reporting period.
Example: An investment adviser performs a month-end account reconciliation for a corporate cash account by comparing the closing balance in the internal general ledger (GL) to the month-end statement provided by the bank. If the GL shows $1.2M but the bank shows $1.15M, the team investigates the $50,000 difference, which may be due to an uncleared wire transfer.
Explore the IVP Reconciliation Solution
Through a combination of automated balance verification and dedicated operational oversight, the IVP Reconciliation Solution ensures the total integrity of the general ledger. The integrated service model provides a centralized control dashboard while IVP’s experts assist in the root-cause analysis of GL breaks. This joint approach allows buy-side firms to close the books faster with higher confidence, knowing every account balance is verified by institutional-grade software and a specialized support team.
