The Fast Close Toolkit

CHAPTER FIVEThe Transaction Accumulation, Reconciliation, and Sub-Ledger Close

THE TRANSACTION ACCUMULATION, RECONCILIATION and Sub-Ledger Close phase of the fiscal close is depicted in the diagram below. This is the first phase of the fiscal close process and focuses on gathering the results of financial transactions that have occurred for the period.

Phase 1: The Transaction Accumulation, Reconciliation, and Sub-Ledger Close

The goal of this phase of the closing process is to ensure the proper transaction accumulation, reconciliation, and sub-ledger close. During this phase, companies need to adhere to the standards established by accounting bodies and regulatory and legal requirements. The following process components are included:

1. The Trial Balance
2. The General Ledger
3. The General Ledger Reconciliation Process

1. Trial Balance

The trial balance is a report produced at the end of an accounting period. It lists the ending balance in each general ledger account. The report is primarily used to ensure that the total of all debits equals the total of all credits, which means that there are no unbalanced journal entries in the accounting system that would make it impossible to generate accurate financial statements.

Even when the debit and credit totals stated on the trial balance equal each other, it does not mean that there are no errors in the accounts listed in the trial ...