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Time to Put Them Down?

December 8, 2009

Do you reconcile zero balance accounts?  I’m not talking about pass-through or clearing accounts, but the other ones that seem to have nothing going on anymore.  The next time you come across such an account as a reconciliation preparer, find out the last time an entry hit.  If it’s more than a year ago, chances are the account is no longer being used.  Get the account closed in the GL.  Why?  Reconciling one or even fifty zero balance accounts with no activity might not take a whole lot of time, but it’s 100% wasted time month after month.  The only value in this exercise is reassurance that there is (still) nothing going on in this account.  A better way to go is to just close the account all together.  It takes no time, requires no future maintenance, and is a much better control to keep transactions out of the account.

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The Back Office Mechanics Blog by Nancy Wu is licensed under a Creative Commons Attribution-Share Alike 3.0 United States License.

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