This familiar lament can sometimes be heard near the accounting department around the end of the month. It’s often accompanied by a hearty “aarrgh!” or other outburst of frustration. The reason it’s so frustrating to be out of balance is because the books cannot be closed until all the accounts are in balance.
Usually, the cause of an imbalance is a step that was missed or performed incorrectly when completing a transaction.
Expandable’s Accounting Support Note 31 is titled “Month End Reconciliation Guidelines” and offers best practices for keep accounts in balance and for troubleshooting the source of any discrepancies.