Accounts Review & Reconciliation Support

Accounts Review & Reconciliation Support

Maintaining accurate and consistent accounting records is important for understanding the financial position of a business and supporting its tax and compliance requirements. As transactions are recorded across bank accounts, ledgers, invoices, GST records and other financial documents, differences can arise that need to be reviewed and reconciled.

Accounts Review & Reconciliation Support involves examining accounting records, comparing related financial information and identifying differences that may require clarification or correction. The review can cover bank statements, sales and purchase records, ledgers, invoices, GST information, tax records and other documents relevant to the business.

The scope of accounts review and reconciliation depends on the business structure, transaction volume, accounting system, nature of transactions, tax registrations and applicable reporting requirements. A structured review helps businesses maintain more consistent accounting records and identify areas that require further attention.

What Is Accounts Review & Reconciliation?

Accounts review and reconciliation is the process of examining accounting records and comparing information from different sources to identify differences, inconsistencies or missing information.

Depending on the nature of the business and its accounting requirements, different accounts and records may be reviewed as part of the reconciliation process.

Why Is Accounts Review Important?

Accounting records can contain differences for several reasons. Timing differences, missing transactions, duplicate entries, bank charges, incorrect classifications and incomplete documentation can all affect the consistency of financial records.

Regular accounts review provides an opportunity to identify these differences and understand their underlying cause. This can support better record maintenance and provide more consistent information for financial reporting, tax review and applicable compliance processes.

Bank Account Review & Reconciliation

Bank account review involves comparing transactions recorded in the accounting system with transactions reflected in the business bank statement. This helps establish whether the bank-related information recorded in the accounts corresponds with actual banking activity.

Differences may arise because of bank charges, outstanding payments, direct credits, direct debits, timing differences or transactions that have not yet been recorded in the accounting system. Reviewing these differences helps determine which records require further attention.

GST Accounts Review & Reconciliation

GST accounts review involves comparing accounting information with applicable GST records to identify differences in sales, purchases, tax liability and related transaction information.

Reviewing these records before applicable GST returns are prepared can help identify discrepancies that may require further examination and appropriate corrective action.

Input Tax Credit Reconciliation

Input Tax Credit reconciliation involves reviewing purchase records against available GST credit information. The review may identify differences in invoices, supplier details, taxable values, GST amounts and transaction periods.

Where differences are found, the relevant invoices and supporting records can be examined to understand the reason for the mismatch. ITC should be claimed only where the applicable statutory conditions and restrictions are satisfied.

Common ITC Differences

• Purchase invoice recorded in accounts but not appearing in available GST data
• Differences in taxable values
• Differences in GST amounts
• Incorrect GSTIN information
• Duplicate purchase invoices
• Credit notes not properly considered
• Invoices appearing in a different tax period
• Potentially ineligible or blocked input tax credit

Ledger Review & Reconciliation

Ledger review involves examining individual account balances and comparing them with the transactions and supporting records behind those balances. This can help identify incorrect postings, missing entries, duplicate transactions and balances that require further investigation.

The nature of the review depends on the type of ledger and the supporting records maintained by the business.

Tax Account Review

Accounting information is often used for tax reporting and other compliance requirements. Reviewing tax-related accounts alongside the underlying financial records can help identify information that may require clarification, correction or additional documentation.

Identifying Accounting & Compliance Gaps

An accounting or compliance gap may arise when a required transaction, record, document, reconciliation, filing or statutory action has not been completed correctly or within the applicable timeline.

Accounts Review & Reconciliation Support can help identify areas requiring attention by examining the relevant accounting records and comparing them with supporting information. Once a difference is identified, the underlying records can be reviewed to determine the appropriate next step.

Documents Required for Accounts Review

The documents required depend on the accounts being reviewed, the type of reconciliation involved and the accounting and compliance requirements applicable to the business.

Complete and properly organised records can make it easier to trace differences and establish whether an issue relates to a transaction, accounting entry, supporting document or reporting record.

Accounts Review for Different Businesses

Every business maintains its accounts differently depending on its operations, revenue model, transaction volume and payment channels. As a result, the areas requiring review and reconciliation can vary between businesses.

Accounts Review for E-commerce Businesses

E-commerce businesses often receive payments through multiple marketplaces and payment gateways. The amount shown in marketplace reports may differ from bank receipts because of refunds, marketplace fees, taxes, adjustments and settlement cycles.

Accounts review for e-commerce businesses can involve comparing marketplace reports, settlement statements, payment gateway records, refunds, fees and bank receipts with the accounting records. This helps identify unmatched transactions and provides a clearer understanding of how recorded sales relate to actual settlements.

Accounts Review Before GST Return Filing

Before applicable GST returns are prepared, businesses may review their accounting records against relevant GST information. This can help identify differences in outward supplies, purchase records, input tax credit and tax liability.

Accounts Review Before Financial Statements

Financial statements are prepared from accounting information that should reflect the underlying business transactions as consistently as possible. Before financial reports are finalised, important accounts such as bank balances, receivables, payables, inventory, loans and tax-related balances may require review and reconciliation.

Reviewing these accounts before financial statement preparation can help identify unresolved differences and provide a more consistent accounting base for financial reporting.

Common Account Review & Reconciliation Issues

Differences in accounting records can originate from individual transactions, supporting documentation or differences between internal and external records. Reviewing common problem areas can help identify where further investigation may be required.

• Missing accounting entries
• Duplicate transactions
• Incorrect transaction classification
• Bank charges not recorded
• Unmatched customer payments
• Unmatched supplier payments
• GST return mismatches
• ITC differences
• Incorrect tax ledger balances
• Unreconciled marketplace settlements
• Incomplete supporting documents

What Is Included in Our Accounts Review & Reconciliation Support?

Our Accounts Review & Reconciliation Support focuses on reviewing financial records, comparing related information and identifying areas where accounting records may require clarification, reconciliation or further attention.

• Accounting record review
• Bank account reconciliation
• GST reconciliation
• ITC reconciliation
• Ledger review and reconciliation
• Sales and purchase reconciliation
• Tax account review
• Financial data verification
• Accounting and compliance gap identification
• Documentation review
• Applicable correction and adjustment support
• Compliance reporting support

Why Choose FilingSuvidha for Accounts Review & Reconciliation Support?

Accounting differences can arise from routine business activity, timing differences, missing records or inconsistencies between different sources of financial information. A structured accounts review helps trace these differences and provides a clearer understanding of the records that require attention.

FilingSuvidha's Accounts Review & Reconciliation Support focuses on reviewing relevant financial records, identifying mismatches and helping businesses maintain organised accounting information for applicable reporting and compliance requirements.

• Structured accounts review
• Bank reconciliation support
• GST reconciliation
• ITC reconciliation
• Ledger verification
• Accounting gap review
• Documentation verification
• Tax account reconciliation
• Financial reporting support
• Transparent professional fees
• Dedicated support

Accounts Review & Reconciliation Support Process

Step 1 — Understand Your Accounts & Requirements

The business structure, accounting records, financial transactions, tax registrations and applicable requirements are reviewed to determine which accounts and records require attention.

Step 2 — Collect Relevant Accounting Records

Bank statements, sales and purchase records, GST information, ledgers, invoices, tax statements and other relevant supporting documents are collected and organised for review.

Step 3 — Review & Reconcile Accounts

Related records are compared to identify differences. This may include comparing accounting books with bank statements, sales records with GST information, purchase records with available ITC data and ledger balances with supporting documents.

Step 4 — Identify Differences & Gaps

Missing entries, duplicate transactions, incorrect classifications, unreconciled balances and potential accounting or compliance gaps are identified for further examination.

Step 5 — Review Corrections & Adjustments

Based on the identified differences, applicable accounting corrections, adjustments, reconciliations or documentation updates may be considered.

Step 6 — Final Account Review & Compliance Support

The reviewed accounts are examined for unresolved differences, and relevant support is provided regarding applicable reporting, documentation and ongoing compliance requirements.

Frequently Asked Questions About Accounts Review & Reconciliation

What is Accounts Review & Reconciliation Support?

Accounts Review & Reconciliation Support involves examining accounting records, comparing related financial information and identifying differences that may require clarification, reconciliation or further action.

What is included in an accounts review?

An accounts review may include examination of bank records, ledgers, sales and purchase records, invoices, GST information, tax accounts and other financial documents depending on the business requirements.

What is bank reconciliation?

Bank reconciliation compares accounting records with bank statements to identify missing entries, timing differences, bank charges, duplicate transactions and other differences.

Why should business accounts be reconciled?

Reconciliation can help identify inconsistencies between different financial records and provide a clearer basis for reviewing accounting information and applicable compliance records.

What is GST reconciliation?

GST reconciliation involves comparing accounting and GST records to identify differences in sales, purchases, input tax credit, tax liability and other applicable information.

What is ITC reconciliation?

ITC reconciliation involves comparing purchase records with available GST input tax credit information to identify differences and review the applicable credit position.

How often should accounts be reviewed?

The appropriate frequency depends on transaction volume, business activity, accounting practices and compliance requirements. Businesses with regular transactions may benefit from monthly or more frequent account review and reconciliation.

Can accounts review help before GST return filing?

Yes. Reviewing books, sales records, purchase records and applicable GST information can help identify discrepancies before GST returns are prepared and filed.

What documents are required for accounts review?

Depending on the scope of the review, documents may include bank statements, sales and purchase registers, GST returns, GSTR-2B, invoices, ledgers and relevant tax statements.

What happens if an accounting mismatch is found?

The relevant transactions and supporting documents should be examined to understand the reason for the mismatch. Where appropriate, the relevant accounting entry, reconciliation or compliance action can then be considered.

Does accounts reconciliation guarantee that there will be no tax issues?

No. Accounts review and reconciliation are processes designed to identify differences and improve consistency between records. Tax and compliance outcomes depend on the specific facts, records and applicable laws.

Get Accounts Review & Reconciliation Support

Regular review of business accounts can help identify differences between financial records and provide a clearer view of areas that may require correction, documentation or further review.

FilingSuvidha provides Accounts Review & Reconciliation Support covering bank account reconciliation, GST reconciliation, ITC review, ledger reconciliation, financial record verification and applicable compliance review.

Important Disclaimer

The information provided on this page is intended for general educational and informational purposes only and should not be considered accounting, tax, legal, financial or professional advice.

Accounts review and reconciliation requirements can vary depending on the business structure, nature of transactions, accounting records and applicable laws. Identifying a difference does not by itself determine the correct accounting or tax treatment.

Businesses should review their specific circumstances and obtain appropriate professional advice before making significant accounting, tax or compliance decisions.