All 23 Reconciliations questions
More in Reconciliations
How do you reconcile a supplier statement to the AP ledger? What is the GR/IR reconciliation and why does it matter? How do you reconcile intercompany AP/AR balances? How does automation (reconciliation software) improve the process? What is a three-way reconciliation (e.g., for trust/client accounts)? What makes a reconciliation 'review-ready' for audit? How do you reconcile petty cash and expense floats? What is the account reconciliation process at month-end close? How do you deal with aged, unexplained reconciling items? How does reconciliation support the financial-close controls and audit?
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Accounts Payable & Receivable › Reconciliations

How do you reconcile accounts receivable to revenue?

Intermediate

Answer

Tie the movement in AR to sales and cash: opening AR + credit sales - cash collected - credits/write-offs = closing AR. Differences point to unposted sales, misapplied cash, or unrecorded credits. This cross-checks that receivables reflect actual billed revenue and collections, supporting revenue assurance.
Opening AR 200k + Credit sales 500k - Collections 480k
  - Write-offs 5k = Closing AR 215k (should equal the ledger).
Real-world example The AR-to-revenue roll-forward flags an unposted batch of sales when closing AR doesn't tie to the ledger.

Common follow-ups: What does the AR roll-forward prove? | What differences might it reveal?

Aging Analysis Cash Application Reconciliations
All 23 Reconciliations questions