Multi-entity, multi-currency operations multiply reconciliation risk. Here are the seven mistakes we see most—and the controls that eliminate them.
Short on time? We can deploy a maker-checker GL recon playbook in weeks. See Our Process • Contact G7A
1) Treating GL Recon as a Month-End Afterthought
Symptom: Fire-drills before reporting.
Fix: Move to continuous reconciliation for high-risk accounts (VAT, payroll, PSP clearing). Adopt a weekly cadence and a monthly hard close.
Links: Bookkeeping & Ledger Management
2) Weak Ownership of Balance Sheet Accounts
Symptom: No single owner; recurring unknowns.
Fix: Assign account owners, define reconciliation templates, monthly sign-off, and escalation lanes.
3) No Standard Templates Across Countries
Symptom: Inconsistent evidence; reviewers can’t trace totals.
Fix: One standard reconciliation template per account type with: beginning balance, period activity, adjustments, supporting schedules, and sign-offs.
4) FX and Revaluation Errors
Symptom: Volatile remeasurement hits and odd variances.
Fix: Define FX policy (transaction date vs. month-end), automate remeasurement, and document methodology in each reconciliation.
5) VAT and Tax Accounts Not Tied to Returns
Symptom: VAT control accounts don’t match filed returns.
Fix: Link VAT GL to return boxes and maintain a controlled mapping table. Reconcile before filing and archive evidence packs.
Links: VAT Filing & Reconciliation, Compliance & Audit Support
6) PSP/Marketplace Clearing Accounts Drift
Symptom: Cash received ≠ revenue booked; fees and VAT netted.
Fix: Reconcile PSP statements to orders and bank; split fees and VAT explicitly; post monthly true-ups.
7) Journal Adjustments Without Narratives
Symptom: “What was this?” every audit.
Fix: Enforce journal narratives with rationale, source, and reviewer; require attachments for material entries.
The GL Reconciliation Pack: What “Good” Looks Like
- Reconciliation cover sheet (account owner, period, sign-offs)
- Roll-forward (opening → activity → closing)
- Supporting schedules (subledger/transaction extracts)
- Variance analysis and evidence
- Outstanding items log with target resolution dates
- Maker-checker sign-off + retention ID
Operating Rhythm (Suggested)
- Weekly: High-risk accounts (VAT, PSP clearing, payroll)
- Monthly: All balance sheet accounts, hard close D+5
- Quarterly: Policy review, threshold tuning
- Annually: Template refresh, tooling review, testing
CTA (box):
Standardize GL reconciliations across countries.
- One template, many jurisdictions
- Owner model + maker-checker
- Faster closes, cleaner audits
Talk to G7A • Bookkeeping & Ledger Management
Tooling Tips
- Use your accounting suite’s reconciliation module or a lightweight tracker (account, owner, template, due date, status).
- Automate extracts (GL, AP/AR, PSP) and use controlled folders with versioning.
- Build dashboards: on-time % by account, variance counts, ageing of recon items.
Conclusion
A disciplined GL reconciliation program is the backbone of reliable reporting—especially when countries, currencies, and channels multiply complexity.
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