[GNC] End of Year?

[Adrien Monteleone]

*ALL accounts are 'credit and debit' accounts. But perhaps you mean 
Checking & Credit Card accounts? (i.e., those held at a 3rd party 
financial institution, since you are referencing 'reconciliation'.)

Reconciliation is usually done prior to a Trial Balance as part of the 
End of Year process and that not infrequently is done up to a month 
(sometimes more) after the calendar date of the end of the period. It is 
not uncommon to see P&L and Balance Sheet reports published in February 
for periods ending December 31.

Otherwise, correcting entries are employed. This is usually the case 
with Accruals that cross period boundaries. You reverse the portion of 
an amount that doesn't apply to the period being closed, and add it back 
in the following period. (this also occurs for interim periods such as 
months or quarters)

Exactly what you do, depends on the requirements of your local jurisdiction.


Regards,
Adrien

On 1/13/24 8:03 AM, Phyllis Bruce wrote:
> Hmmmm, would you not also need to re-enter any unreconciled transactions in
> your credit and debit accounts?