Reconciliation of Accounts Payable and Receivable

Accounts receivable and payable need to be reconciled every month and there should be a process in place to check that this has occurred

Make sure you keep on top of your documentation every month as this allows you to identify any issues straight away and address them at the time rather than playing ‘catch up’ later on.

 

Unsure of the steps to follow for accounts payable and receivable?

Using the reporting function on MYOB, the report “Receivables Reconciliation (Detailed or Summary)” and “Payables Reconciliation (Detailed or Summary)” will show if there is an out of balance position.

Run these reports and compare the data produced:

  • If it is not out of balance then all transactions have been entered correctly and you just need to schedule a regular reminder to check this every month
  • If there is an out of balance figure there, this means that one (or more) transactions have been entered on the general ledger without going through the payables/receivables system.

 

What to do if there is an out of balance figure?

Rather than ignore this and hope it will fix itself down the track, the best option is to address it straight away.

To rectify this, print out a copy of the general ledger for the month for the payables/ receivables and check that all transactions on the ledger are on the payables/ receivables report.

If there is a difference you will need to reverse the amount out of the ledger and repost through the payables/receivables module.  This should fix the out of balance amount.  There may be more than one amount and so this process may need to be repeated.

 

Once these steps have been undertaken, run the report again to confirm that everything balances.  Then sit back, relax and schedule in a reminder to repeat the same process next month!

 

Assistance available

Should you require any guidance regarding systems and streamlining processes, please don’t hesitate to contact us on 1300 CBAUDIT.

 

If you are not a current client and would like more information on our services, please contact Matt Williams through [email protected].