What reconciliations does a controller perform?
Controllers reconcile balance sheet accounts that require professional judgment, investigation, and adjusting entries to correct. While a bookkeeper matches bank transactions and categorizes expenses, a controller reviews every account that carries a balance from month to month and ensures those balances are accurate and supportable.
Bank and credit card reconciliations are the starting point, but a controller goes deeper. They review the reconciliation work done by bookkeeping staff, identify timing differences, and investigate any items that have been outstanding too long. A check written three months ago that never cleared isn’t just a reconciling item. It’s a problem that needs resolution.
Accounts receivable reconciliation compares the AR aging report to the general ledger balance. When these don’t match, something is wrong. The controller investigates discrepancies, writes off uncollectible balances with proper documentation, and ensures revenue recognition aligns with actual customer obligations.
Accounts payable reconciliation works similarly. The controller verifies that the AP aging matches the general ledger, reviews vendor statements for missing invoices, and ensures liabilities are recorded in the correct period. Vendors don’t always send invoices promptly. A controller makes sure expenses hit the right month regardless of when paperwork arrives.
Fixed asset reconciliation tracks every piece of equipment, furniture, and improvement your business owns. The controller maintains the depreciation schedule, records additions and disposals, and ensures accumulated depreciation balances match supporting schedules. This directly affects your tax return and the accuracy of your balance sheet.
Prepaid expense reconciliation ensures items paid in advance get recognized as expenses over the correct periods. Annual insurance premiums, software subscriptions, and deposits all start as assets and convert to expenses over time. Controller-level oversight catches when these amortization entries get missed or calculated incorrectly.
Accrued liability reconciliation covers expenses you’ve incurred but haven’t paid yet. Payroll earned but not yet processed, interest accruing on loans, professional fees for work in progress. These entries require understanding what obligations exist at month end, not just what invoices have arrived.
Loan reconciliations verify that principal balances match lender statements and that interest expense has been recorded correctly. The controller separates principal from interest on each payment, tracks balloon payments coming due, and ensures loan covenants are being monitored.
Intercompany reconciliations matter when you have multiple entities. Parent companies lending to subsidiaries, shared expenses allocated across divisions, and transactions between related parties all need to net to zero when consolidated. These reconciliations get complicated quickly and errors here create serious problems during audits or due diligence.
Equity reconciliations track owner contributions, distributions, and retained earnings. The controller ensures current year net income flows correctly into equity and that any owner transactions are properly recorded.
The output of all this work is a balance sheet you can trust. Every number ties to supporting documentation. When your Boca Raton advisory team reviews financial statements with you, the discussion focuses on what the numbers mean for your business rather than whether the numbers are right in the first place.
Businesses that skip controller-level reconciliations often discover problems during tax preparation or worse, during a sale or audit. Cleaning up years of unreconciled accounts costs significantly more than maintaining them properly each month.
Premium Controller & CFO Advisory Firm
Next Step:
Let's Talk About Your Business
Tell us about your business and your goals. We'll discuss how Jargo can support your financial operations and growth.
More Questions
How often does a fractional CFO meet with my business?
Most fractional CFO engagements include monthly or bi-weekly scheduled meetings. The actual frequency depends on your business complexity, current projects, and whether you're in a growth phase or steady state.
Read answerHow do I register for a Florida sales tax permit?
Register online through the Florida Department of Revenue website. The application takes about 15-20 minutes if you have your business information ready, and there's no fee to register.
Read answerWhat are the sales tax rules for marine dealers in Florida?
Florida charges 6% sales tax on boat sales plus county surtax, but caps the state portion at $18,000 per vessel. Marine dealers must collect tax at the point of sale, handle exemptions with proper documentation, and file returns based on their collection volume.
Read answerWhat records should I keep for business tax purposes?
Keep records that document income, expenses, payroll, assets, and banking activity. Most records should be retained for at least three years, though some need to be kept for seven years or longer.
Read answerHow do dental practices manage patient billing and collections?
Dental billing involves coordinating insurance claims with patient responsibility. Most practices use dedicated practice management software to submit claims, track payments, and follow up on outstanding balances.
Read answerWhat is the sales tax rate in Palm Beach County?
The sales tax rate in Palm Beach County is 7%, consisting of the 6% Florida state rate plus a 1% county discretionary surtax. This rate applies to taxable sales delivered within Palm Beach County.
Read answer
