Accountio / Templates / Reconciliations / Balance sheet reconciliation

Balance sheet reconciliation template in Excel

Reconcile every balance sheet account at month end: roll the balance forward from last month, list what makes it up and get a second person to review it. This balance sheet reconciliation template is one Excel workbook with a tab for each account, from debtors and prepayments to VAT, accruals and loans, and an index that shows which accounts are still open.

Finance teams
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Reconciliations pack
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What the workbook looks like

Balance sheet reconciliation template
What the workbook coversSheet or row in the workbook
Every account in one place
✓
IndexCode, name, risk, ledger balance, unexplained amount and status for each account, with accounts signed off and still open
Tabs ready for the usual accounts
✓
1100 Trade debtors to 2400 Bank loanTrade debtors, prepayments, other debtors, trade creditors, accruals, VAT, PAYE and pensions, deferred income and bank loan
Room for your own accounts
✓
Spare 1, Spare 2Change the code and name for any other account
The account and how much it matters
✓
Account code, Account name, Risk, ToleranceRisk rated High, Medium or Low, with a tolerance for each account
Movement since last month
✓
Roll-forwardOpening balance, increases, decreases and other movements, agreed to the ledger
What makes up the balance
✓
Supporting detail: what makes up the balanceItem, reference, date, evidence held, amount, days old and action to clear
Anything left unexplained
✓
Ledger less supporting detail (unexplained)Flagged when it is above the tolerance
Old items
✓
Items over 90 days oldEach one needs an action to clear it
Preparer and reviewer sign-off
✓
Prepared by, Reviewed by, CheckFlags the same name twice and a review dated before preparation

When you need a balance sheet reconciliation

A balance sheet reconciliation proves that the balance on an account in the ledger is right, by showing how it moved since last month and what it is made of. Companies must keep accounting records that show their financial position with reasonable accuracy at any time, and reconciling the balance sheet each month is how a finance team shows that. Use this one when:

  • Only the bank is reconciled each month and the other balance sheet accounts wait for the year end
  • Accruals and prepayments are rolled forward without a list of what is in them
  • Your auditor asks for reconciliations with evidence and a reviewer's sign-off
  • Old items sit on control accounts and nobody knows what they are

How to use the balance sheet reconciliation template

  1. Set up each tab. Check the account code and name, set the risk and the tolerance, and rename a Spare tab for any other account.
  2. Enter the ledger balance. Debit balances are positive and credit balances negative, the same as the trial balance.
  3. Complete the roll-forward. Opening balance, increases, decreases and other movements. The closing figure must agree to the ledger.
  4. List the supporting detail. Enter each item with its reference, date, amount and the evidence you hold. Anything over 90 days old needs an action.
  5. Sign off and check the Index. The preparer signs, then a different reviewer. The Index shows every account that is still open.

Questions

What is a balance sheet reconciliation?

A check that the balance on a balance sheet account in the ledger is supported. It rolls the balance forward from the previous month and lists the items that make it up, such as invoices, accrual workings or statements, until nothing is left unexplained.

How do you do a balance sheet reconciliation?

Start with last month's reconciled balance, add the increases, take off the decreases and agree the result to the ledger. Then list the items that make up the closing balance with their evidence, explain any difference and have someone else review it.

Which balance sheet accounts should be reconciled?

All of them, with the most attention on high-risk accounts such as trade debtors, trade creditors, accruals and VAT. Accounts with a nil balance or no movement still need a quick check.

What is a roll-forward in a reconciliation?

The movement on an account from opening to closing balance: the opening balance, plus increases, less decreases, plus or less other movements such as journals. It shows the balance is built from known activity.

What is a good balance sheet reconciliation?

One where the roll-forward agrees to the ledger, every item is supported by evidence, old items have an action to clear them, and someone other than the preparer has reviewed and dated it.

Also in the reconciliations pack

Bank reconciliationIntercompany reconciliationStock reconciliation

See the whole pack →

Who it's for

Finance teams, financial controllers and bookkeepers who close the books each month.

Last checked

Checked against the Companies Act 2006 accounting records rules in November 2026.