Balance Sheet Reconciliation Made Simple: Modern Methods for 2025

Team Nomi

Oct 06, 2025
3 minutes read

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For accountants, accuracy is everything. One of the best ways to ensure financial records are reliable is through balance sheet reconciliation. 

Done properly, it checks that every line item on the balance sheet matches supporting documentation. Firms can then spot discrepancies before they become bigger issues.

But it’s 2025. And we live in an age of increasing automation and tighter compliance expectations. Which means firms need to modernise their account reconciliation process. 

In fact, according to a recent report by HSBC and Accountancy Age, over 30% of accounting firms have already integrated AI into their operations, with a further 23% planning to adopt it by the end of the year.

So let’s take a look at what balance sheet reconciliation involves, why it matters and how to streamline it for 2025 onwards.

What Is Balance Sheet Reconciliation?

In simple terms, balance sheet reconciliation is about comparing balances in your general ledger with independent records to ensure accuracy. These records can include bank statements, invoices or loan schedules.

Balance sheet reconciliation ensures that:

• • Assets are really owned by the company
  • Liabilities are complete and recorded correctly
  • Equity balances reflect actual transactions

Think of it as the backbone of a balance sheet audit. Without thorough reconciliation, errors can creep in. In the worst case this could lead to misstated accounts or even regulatory issues.

Why It Matters in 2025

Several factors make reconciliation more important now than ever before:

• • Regulatory pressure – Auditors and regulators expect greater transparency and more detailed supporting evidence.
  • Technology shifts – Automated tools are now mainstream, enabling faster and more accurate reconciliations.
  • Remote and hybrid work – With teams often dispersed, having a clear, digital-first process reduces risk and improves collaboration.

For accounting firms, efficient reconciliation will keep you compliant while demonstrating accuracy and trust to clients.

The Account Reconciliation Process: A Simple Step-by-Step

1. Collect the Data

Collect all relevant supporting records, from bank statements and loan agreements to invoices and fixed asset schedules.

2.Compare Balances

Match ledger balances to external records. For example, your cash account should match the bank statement after adjusting for timing differences (e.g. outstanding cheques, delayed bank transactions and bank fees).

3. Investigate Discrepancies

If the numbers don’t match up, drill down to find the reason. It could be a timing issue, a missing entry or an error.

4. Adjust and Correct

Post the necessary journal entries to bring accounts into line. Always document these adjustments for audit purposes.

5. Review and Approve

A senior accountant or manager should review reconciliations. This sign-off ensures accountability and audit trails.

Best Practices for 2025

• • Automate wherever possible – Cloud-based platforms reduce tedious manual entry, flag mismatches and create real-time dashboards.
  • Standardise your process – Use templates and checklists so your team follows a consistent method across clients.
  • Keep clear documentation – Every adjustment should have a paper (or digital) trail to make audits smoother.
  • Reconcile regularly – Monthly reconciliations help avoid a backlog at year-end and keep financial data accurate.

Modernising Balance Sheet Reconciliation

In 2025, balance sheet reconciliation is no longer a manual, box-ticking exercise. It’s a vital part of delivering accurate accounts, supporting balance sheet audits and building client trust. 

It’s time to embrace automation and AI, and refine your account reconciliation process. Firms can make reconciliation faster, more consistent and more valuable for clients.

Are you looking to modernise your reconciliation workflow? Nomi’s accounting software helps automate reconciliations, maintain clear audit trails and give you the confidence that every balance adds up.

Book a free demo and see how Nomi can help.