Account reconciliation is crucial for any company's financial processes as it ensures the completeness and accuracy of its financial statements. Companies must reconcile all balance sheet accounts to avoid any misstatements. This process may involve identifying and posting various adjustments to the general ledger to ensure accurate financial reporting.The reconciliation process is crucial to the company's internal control. Additionally, Section 404 of the Sarbanes-Oxley Act also mandates all public companies to include an assessment of their internal controls as part of their annual reports. If account reconciliation is not done in a timely manner, it could result in significant financial risk.