Balance Sheet Account Reconciliations

1. Balance Sheet Account Reconciliations

2. Balance Sheet Accounts • Balance Sheet Accounts • Assets - examples • Cash • Inventory • Receivables • Prepaid expenses • Capital equipment • Liabilities – examples • Accounts payable • Deposits • Deferred revenue • Clearing accounts – (18xx account codes) • These account balances carry forward at the end of each year

3. Reconciliations – What and Why • Detailed identification of asset and liability balances • List of items or transactions making up the balance • Subsystem or manual list • Proper classification of transactions • (Operating Unit, Account, and Class) • Agree subsystem balance to the General Ledger • Journal entry to clean up improper and old balances • Internal Control • Provide accurate financial information for decision making • Influences the extent of year-end audit procedures

4. Financial Services Responsibility • Financial Services will reconcile the following account balances: • University bank accounts • University receivables • Investments • Land, buildings, and equipment • Accounts Payable • Accrued payroll, vacation, and benefits • Loans and notes payable

5. Campus Controller Responsibility • Campus Controllers oversee the reconciliation of the following account balances: • Department Bank Accounts • Department Receivables • Inventory • Prepaid Expenses and Other Assets • Clearing accounts (18xx) • Accrued Liabilities • Deposits due to others (excluding Agency fund 47 account 2300) • Deferred Revenue

6. How to Identify • Run the “Balance Sheet Reconciliation Balances” BOb query to indentify balances you must reconcile: • Navigation: Public Folders > Financial System Information > Reconciliation Support • Data output is based BOb security • Run query periodically to confirm you have no unexpected balances to reconcile or correct

7. How Often • Account balances should be reconciled monthly • Copies of August and December reconciliations should be sent to Financial Services • Larry McFerson (larry_mcferson@byu.edu, 2-2080) • Clean-up balances now – don’t wait

8. Training and Support • A Balance Sheet Reconciliation Guide and Template can be found on the Financial Services web page • Navigation: Organizations & Services > Accounting > Financial Accounting system • Balance Sheet Reconciliation Guide • Balance Sheet Reconciliation Template • Questions contact Larry McFerson • larry_mcferson@byu.edu, 2-2080 • Would an annual training class be helpful?

9. Questions?