Reconciliation is the process of comparing two sets of records to ensure they match and to identify discrepancies. The most common form is bank reconciliation — comparing the general ledger cash balance to the bank statement.
Bank reconciliation (GL vs bank statement), accounts receivable reconciliation, accounts payable reconciliation, VAT reconciliation (input VAT in the GL vs the VAT return), and intercompany reconciliation for group entities.
The FTA expects VAT records to reconcile to accounting records at all times. During a VAT audit, the FTA compares VAT returns to the general ledger, invoices, and bank statements. Unreconciled differences are a red flag and can result in penalties.
Finanshels performs full monthly reconciliations for every client as part of the bookkeeping service, ensuring accounts are audit-ready and VAT and corporate tax returns are supported by accurate underlying records.
