What is Balance Sheet Reconciliation?
Balance sheet reconciliation is the process of checking that the balances in balance sheet accounts are accurate, complete, and supported by underlying records or documentation. In practice, this means comparing general ledger balances to source data such as subledgers, statements, schedules, or supporting documents to confirm that each account is correct at a given point in time.
For SAP finance teams, balance sheet reconciliation is a key control within month-end and year-end close. It helps identify errors, missing entries, duplicate postings, ageing items, and unresolved differences before they affect reporting or audit outcomes. When this process is handled manually in spreadsheets outside SAP, it often becomes slower, harder to track, and more difficult to evidence.
A good balance sheet reconciliation process gives finance teams better visibility, stronger control, and a clearer audit trail, especially when reconciliations are prepared, reviewed, and approved directly inside SAP.