6 Crucial Reconciliations Every Accountant Must Verify

GST & TDS Reconciliation – What Every Accountant Should Verify Before Closing the Month

Many accountants reconcile GSTR-3B with Tally, but one important step is often missed:

Electronic Cash Ledger & Electronic Credit Ledger Reconciliation.

Before closing the month, make sure these 6 reconciliations are complete:

• GSTR-1 ↔ Sales Register
• GSTR-2B ↔ Purchase Register
• GSTR-3B ↔ GST Ledgers
• Electronic Cash Ledger ↔ Tally
• Electronic Credit Ledger ↔ Tally
• 26AS / TRACES ↔ TDS Ledgers

A successful month-end closing isn’t just about passing entries—it’s about ensuring that your books and the government portals tell the same story.

Accounting Principle of the Day

“If it can’t be reconciled, it shouldn’t be closed.”

What is the most common reconciliation issue you encounter during month-end closing? Share your experience in the comments.

ACCOUNTING IN PRACTICE

— EPISODE 2 —

GST & TDS RECONCILIATION

What Every Accountant Should Verify Before Closing the Month

Portal vs Tally   |   Reconcile   |   Verify   |   Close with Confidence

6 THINGS TO RECONCILE EVERY MONTH

(1) GSTR-1 vs Sales Register Match outward supplies, invoice details, taxable value & tax amounts.	(2) GSTR-2B vs Purchase Register Match ITC available with purchase records, invoice details & tax amounts.	(3) GSTR-3B vs GST Ledgers Match liability & ITC claimed with GST output & input ledgers in Tally.
(4) Electronic Cash Ledger vs Tally Reconcile cash deposited, utilized & closing balance with Tally GST Cash Ledger.	(5) Electronic Credit Ledger vs Tally Reconcile ITC available, utilized & closing balance with Tally ITC Ledgers.	(6) 26AS / TRACES vs TDS Ledgers Match TDS deducted, deposited & reflected with TDS ledgers in Tally.

PRACTICE ENTRY – CASH & CREDIT LEDGER MATCH 1 Record GST Liability (as per GSTR-3B) Output GST Payable A/c           Dr.    2,40,000 To Electronic Credit Ledger             1,80,000 To Electronic Cash Ledger                 60,000 2 Deposit Cash on GST Portal (PMT-06) Electronic Cash Ledger (GST)     Dr.      60,000 To Bank A/c                               60,000 3 Utilization in GSTR-3B Electronic Credit Ledger Utilized Dr.    1,80,000 Electronic Cash Ledger Utilized  Dr.      60,000 To Output GST Payable                   2,40,000 ✓ Now reconcile the balances on portal with Tally GST Ledgers.

RECONCILIATION CHECK GST PORTAL   TALLY Electronic Cash Ledger = GST Cash Ledger Electronic Credit Ledger = ITC Ledgers GSTR-3B = GST Liability Ledger 26AS / TRACES = TDS Ledgers     MOST ACCOUNTANTS MATCH GSTR-3B, BUT FORGET TO RECONCILE CASH LEDGER & CREDIT LEDGER. DON’T BE ONE OF THEM.

PRACTICE CORNER Case: • GSTR-3B Liability  : ₹2,40,000 • ITC Available      : ₹1,80,000 • Cash Paid (PMT-06) : ₹60,000 Question: Which ledgers will you reconcile in Tally before closing the month?

“A month-end close isn’t complete until your books and the government portals tell the same story.”

ACCOUNTING PRINCIPLE OF THE DAY If it can’t be reconciled, it shouldn’t be closed.

Reconcile Today, Close with Confidence.