Month-end close Updated November 2026

Accounts receivable reconciliation

Run the AR aging (the subledger) as of month-end and compare its total to the Accounts Receivable balance in the general ledger. They should be equal; differences come from journal entries posted straight to the GL, unapplied payments, credit notes not yet issued or timing of posting. Document each difference and clear it.

Syntax

GL Accounts Receivable balance = AR aging total (subledger) + Reconciling items (should be nil)

Part	What it is
`AR aging`	List of open invoices by customer and age; the subledger
`GL control account`	Accounts Receivable in the general ledger
`Unapplied cash`	Receipts recorded but not matched to invoices; reduces the true receivable
`Allowance`	Reconciled separately; the net figure goes on the balance sheet

Examples

GL Accounts Receivable 48,200
AR aging total 47,500
Manual journal to AR for a bad debt write-off 700 not reflected in the subledger

Result: 47,500 + 700 = 48,200. Fix: post the write-off against the customer in the subledger so both agree at 47,500.

GL 30,000; aging 31,000; unapplied customer payment 1,000 sitting in a clearing account

Result: Apply the 1,000 to the customer's invoice; aging falls to 30,000 and matches.

Common mistakes

Posting journal entries directly to the AR control account: every change should go through the subledger so the two stay in sync.
Running the aging today for last month's close: use the as-of date, or later receipts will distort it.
Ignoring credit balances in the aging: they are liabilities or unapplied cash, not negative receivables.

Practice Accounts receivable reconciliation

These drills check your answer on live data, free, no account needed.

Service business closeClassify every line, enter both adjusted balances, then choose the journal entry the company must record for each item that affects its books.
The full workoutClassify every line, enter both adjusted balances, then choose the journal entry the company must record for each item that affects its books.

Questions

Why does my AR aging not match the general ledger?

Usually a manual journal to the control account, an unapplied payment, or an invoice posted in a different period than the aging date.

What is the AR reconciliation for a customer?

A statement of account: opening balance, invoices, credits, payments, closing balance, agreed with the customer's own records.

Accounts payable reconciliationReconcile accounts payable in two directions: the AP aging to the general ledger control account, and each major vendor statement to the ledger.
Balance sheet reconciliationA balance sheet reconciliation supports each ledger balance with independent evidence: a bank statement, an aging, a schedule or a roll-forward. Sign-off.
Month-end close checklistA month-end close checklist in sequence: cutoff, bank and card reconciliations, AR and AP, accruals and prepaids, fixed assets, balance sheet recs, lock.
NSF checkAn NSF (non-sufficient funds) check is a customer check the bank bounced after deposit. Subtract it from the book balance, reinstate the receivable, add fees.