Account reconciliation compares a ledger balance with independent evidence, such as a bank statement, a sub-ledger or a counterparty confirmation, and explains every difference. Reviewed and signed-off reconciliations are a common key control.
Sub-ledgerA sub-ledger holds the detailed transactions of one area, such as loans, receivables, payables, fixed assets or securities, and posts summarised totals to the general ledger. The sub-ledger to ledger reconciliation checks that the two agree.
Intercompany reconciliationIntercompany reconciliation is the matching of balances and transactions between entities of the same group so that both sides agree before consolidation eliminates them. Unmatched items are investigated and corrected during the close.
Month-end close (period-end close)The month-end close is the set of accounting tasks that finalise the books for a period: cut-off, sub-ledger closing, accruals, revaluations, reconciliations, intercompany matching, review of journals and reporting. It runs to a working-day calendar, and the year-end close adds audit and statutory work.
Key controlA key control is a control that on its own, or with a few others, prevents or detects a material error or a significant risk. Key controls are documented with an owner, frequency and evidence, and are tested more often than other controls.
Sub-ledgerA sub-ledger holds the detailed transactions of one area, such as loans, receivables, payables, fixed assets or securities, and posts summarised totals to the general ledger. The sub-ledger to ledger reconciliation checks that the two agree.
Key controlA key control is a control that on its own, or with a few others, prevents or detects a material error or a significant risk. Key controls are documented with an owner, frequency and evidence, and are tested more often than other controls.