Definition: The process of verifying the balances in the general ledger (the central record of all financial transactions) match the supporting sub-ledgers and external statements. This ensures the high-level financial summary of the firm is supported by detailed, accurate transaction data.
Example: At the end of the quarter, a firm reconciles the “Investments at Fair Value” account in its GL against the detailed position report from its portfolio management system (PMS). Any difference between the two indicates a missing trade or a valuation error that must be corrected.
Explore the IVP Reconciliation Solution
The IVP Reconciliation Solution automates the tie-out between sub-ledgers and the GL, providing a “three-way” reconciliation between the PMS, GL, and custodian. As part of our integrated offering, IVP’s team monitors these GL mappings and investigates any trial balance imbalances. This ensures that the accounting records are always in sync with the operational reality, reducing the complexity of the audit process.
