Which reconciliations must be complete before close?
Meaning in day-to-day work
What does it mean in practice?
The general ledger is the authoritative accounting record where posted entries are organized by account and period. Operational documents such as invoices, receipts, payroll, expenses, inventory movements, and asset transactions should reach the ledger through defined posting rules.
Practical example
A sales invoice can debit accounts receivable and credit revenue and output tax. When the customer pays, cash is debited and receivables are credited. The ledger preserves both events and their source-document links.
From start to close
How does the workflow operate?
1
Design the chart of accounts, periods, currencies, and reporting dimensions.
2
Map each source document and event to balanced posting rules.
3
Validate and approve the transaction before posting.
4
Reconcile subledgers, bank, tax, inventory, payroll, and control accounts.
5
Post adjustments, review the trial balance, and lock the period after close.
Recommended controls
What protects workflow quality?
Balanced debits and credits for every journal
Source-document link and unique posting reference
Segregation between preparation, approval, and posting
Period locks with controlled reopening and audit evidence
Common mistakes
What should teams avoid?
Posting manual summaries that duplicate subledger entries
Using the payment date when the accounting event belongs to another period
Closing before reconciling control accounts and source systems