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Documentation Index

Fetch the complete documentation index at: https://docs.dualentry.com/llms.txt

Use this file to discover all available pages before exploring further.

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How to Reconcile Balance-Sheet Accounts

Account reconciliation confirms that GL balances match supporting detail - bank statements, sub-ledger reports, third-party confirmations, or internal schedules. In DualEntry, you reconcile accounts through a workpaper-style interface that tracks status, stores evidence, and carries forward unreconciled items.

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Set up accounts for reconciliation

Before your first close, designate which accounts require reconciliation each period.
  1. Navigate to Close Management → Reconciliation → Settings.
  2. Choose Add Accounts.
  3. Select the balance-sheet accounts that need reconciliation (cash, receivables, prepaids, payables, accrued liabilities, etc.).
  4. For each account, assign a default preparer and default reviewer.
Once configured, DualEntry creates a reconciliation workpaper for each designated account at the start of every close period. You can add or remove accounts from the reconciliation list at any time - changes take effect in the next period. When deciding which accounts to include, consider materiality and audit requirements. At minimum, reconcile all cash accounts, intercompany accounts, and any accounts with significant manual activity. Accounts driven entirely by automated sub-ledger postings (like AP and AR control accounts) still benefit from reconciliation to catch integration errors or timing differences. You can also group accounts by preparer to balance workload across the team.

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Create a reconciliation workpaper

DualEntry generates workpapers automatically when you open a new close period, but you can also create them manually by navigating to Close Management → Reconciliation and selecting the period and account. DualEntry populates each workpaper with the GL ending balance and any unreconciled items carried forward from the prior period. Each workpaper has three sections:
  • GL balance - the ending balance from the General Ledger for the period.
  • Supporting balance - the balance per external source (bank statement, sub-ledger, third-party confirmation) that the GL should agree to.
  • Reconciling items - the differences between GL and supporting balance, with explanations and expected resolution dates.
The carryforward of reconciling items is automatic. An outstanding check you entered in April’s reconciliation appears on May’s workpaper as a prior-period item until it clears or you resolve it manually. This ensures nothing falls through the cracks between periods.

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Reconcile an account

Work through each workpaper to confirm the GL balance is accurate.
  1. Open the workpaper for the account and period.
  2. Enter the supporting balance from your external source.
  3. If the GL and supporting balances match, mark the account as Reconciled.
  4. If they differ, add reconciling items to explain each difference - timing differences, outstanding checks, pending deposits, adjusting entries needed.
  5. For each reconciling item, note whether it will clear in the next period or requires a journal entry to correct.
When adding reconciling items, be specific about the expected resolution. “Outstanding check #4512 - expected to clear by May 10” is actionable. “Timing difference” without detail creates follow-up questions during review. If an item requires a journal entry, post the entry before signing off so the workpaper reflects the corrected balance.
Reconciling items carry forward automatically. An outstanding check entered in April’s reconciliation appears on May’s workpaper as a prior-period item until it clears or you resolve it manually.

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Attach evidence and auto-reconciliation

Attach supporting documents to any workpaper to maintain the audit trail. Open the workpaper, choose Attach File, and upload bank statements, confirmations, screenshots, or schedules. Attachments are versioned - uploading a new file doesn’t overwrite previous attachments. Auditors can review the complete history of evidence for any account and period. Bank accounts connected through Bank Connections support auto-reconciliation. DualEntry’s bank matching engine compares bank transactions to GL entries and matches them automatically. The reconciliation workpaper for a bank account reflects the auto-matched results. For bank accounts, your workflow is: open the bank account workpaper, review the auto-matched items, investigate any unmatched items (these become reconciling items), and mark the account as reconciled once all items are resolved or explained. Auto-reconciliation reduces the manual matching work so you can focus on exceptions. If the matching engine’s confidence score is below the threshold you configure, the item appears as unmatched for your manual review.

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Sign off and use the dashboard

Each workpaper supports a two-level sign-off: preparer and reviewer.
  1. The preparer completes the reconciliation and marks the workpaper as Prepared.
  2. The reviewer checks the work and marks it as Reviewed.
  3. Once reviewed, the workpaper status changes to Complete, and the corresponding task on the close checklist updates automatically.
If the reviewer finds issues, they can reject the workpaper with comments. The preparer receives a notification and the workpaper returns to In Progress. The reconciliation dashboard gives a single view of all accounts for a period:
ColumnDescription
AccountAccount number and name.
GL balanceEnding balance per the ledger.
Supporting balanceBalance per external source.
VarianceDifference between GL and supporting balance.
StatusNot started, In progress, Prepared, Reviewed, Complete.
PreparerAssigned preparer.
ReviewerAssigned reviewer.
Filter by status to focus on incomplete reconciliations. Sort by variance to prioritize accounts with the largest unexplained differences.
Do not lock the period until all required reconciliations are complete. Locking with open reconciling items makes it harder to post corrections later.
After reconciling your balance-sheet accounts, you have documented evidence that GL balances agree to supporting detail. Unreconciled items carry forward for resolution in the next period. The completed reconciliations feed into the close checklist and support flux analysis by confirming that the balances under review are accurate.
Last modified on May 28, 2026