Back to Record-to-Report (R2R) Process: Master the Accounting Lifecycle
How does a risk-based reconciliation approach work?
Record-to-Report (R2R) · Article FAQ
Detailed Explanation
Rather than treating all accounts equally during a tight close, a risk-based approach reconciles high-volume, highly volatile, and material accounts (such as Cash, Intercompany, and Accounts Receivable) frequently, while reconciling stable, low-risk accounts (such as Security Deposits) on a rotational or quarterly schedule.
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Disclaimer: This material is for educational purposes only. Every financial situation is unique. Consult with a certified professional before making significant decisions.
