Every account has a source. Yoraito ties to it.
| Account | Independent source | Yoraito checks |
|---|---|---|
| Cash | Bank statement | Four-pass matching, tie-out to $0.00 |
| Accounts receivable | AR aging | Aging total = control account; items over 90 days |
| Prepaid expenses | Prepaid schedule | Rollforward rebuild; expired items still carrying a balance |
| Fixed assets | Asset register | Additions, disposals, depreciation vs GL |
| Accounts payable | AP aging | Aging total = control account; debit balances |
| Accrued liabilities | Accrual schedule | Reversals posted; true-ups vs actual bills |
| Deferred revenue | Revenue schedule | Rollforward; recognition vs schedule |
| Debt | Lender statement | Principal and interest vs GL |
How a reconciliation is built
- Pull the GL balance and the source for the same date. Yoraito records row counts and totals for each so completeness is visible.
- Tie or roll forward. For tie-out accounts, compare the two balances. For rollforward accounts, rebuild opening + additions − reductions = closing and compare to the GL.
- Explain the difference with specific items: what they are, how old they are, who owns them.
- Draft entries for items that need one, for a person to approve.
- Review and sign. Preparer and reviewer are recorded separately.
Each figure in steps 2 and 3 carries the query that produced it.
What reviewers stop doing
- Re-adding schedules to check that they foot.
- Asking "where did this number come from?"
- Chasing support by email.
- Discovering at year-end that a reconciling item has been sitting there since March.
Aged items are flagged at every close, with the owner and the date the item first appeared.
Risk-based, not one-size-fits-all
Not every account needs a full reconciliation every month. Set a frequency and threshold per account (monthly for cash and AR; quarterly for low-risk prepaids), and Yoraito tracks which reconciliations are due each close. Write the policy down; your auditor will ask for it.
Example: a prepaid rollforward, explained
| Line | Amount | Source |
|---|---|---|
| Opening balance (30 Sept) | $198,700.00 | Prior reconciliation |
| Additions in October | $61,250.00 | GL detail, query Q03 |
| Amortization in October | -$47,500.00 | Schedule, query Q04 |
| Expected closing balance | $212,450.00 | Query Q06 |
| GL closing balance | $219,950.00 | Query Q07 |
| Insurance policy ended 30 Sept, still carrying a balance | $4,500.00 | Query Q08 · Evidenced |
| Software prepayment on 22 Oct, not yet on schedule | $3,000.00 | Query Q09 · Needs owner |
| Unexplained difference | $0.00 | Query Q10 |
Illustrative. Two specific items explain the whole difference; one needs an owner to confirm the service period.
Reconciliation statuses you can scan
Each account carries one status per close, so the controller can see the state of the balance sheet at a glance:
- Balanced: ties with no open items.
- Balanced with items: ties after explained reconciling items.
- Variance: a difference remains; owner assigned.
- Not started / Prepared / Reviewed: where it is in the workflow.
For SOX-minded teams
Account reconciliations are often key controls. A strong reconciliation control shows who prepared it, who reviewed it, when, at what threshold, and what evidence supports it. Yoraito records each of those and adds the SQL behind each balance. See how this maps to controls over AI-prepared work → /resources/sox-controls-for-ai.