Archive / 2.01 Confirmation Letters

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Confirming balances

A part of year-end closing is always confirming balances you have in your balance sheet. When we say „confirm“, we do mean agreeing them with the other party the balances are owed to or to be collected from. Whereas we have discussed the confirmation procedure and even shared a template with you, what we would […]

How to deal with non-responses?

Provided that you haven’t used the sentence similar to “If we don’t receive your reply, we do consider our balance correct and confirmed by you” you really need to get the majority of the confirmations back. Simply sending them out and hoping to get everyone to reply in reality is just, to be blunt, naïve. […]

What should be on a confirmation letter?

The first step in preparing for the confirmation procedure is making the template for the letters. It’s best to have it done prior and even better if once and for all. Having nice and orderly templates ensures you’ll have all necessary bits covered; everything looks similar and is easily understandable to others. Fields which are […]

When to do confirmation letters

As a general rule the management is obliged to ensure the balances are always correct. In practice the balances are confirmed mostly once a year though, and as such you want to make sure it’s as close to year end as possible. The best option would be to confirm the balances as at year end […]

Picking who to send confirmation letters to

As the year end is getting closer, it is also the time to start thinking about doing confirmation letters – both for accounts receivables and payables. Whilst some may think that it’s the supplier’s problem to confirm their receivables, it in fact isn’t so. It is the management’s responsibility to ascertain all assets and liabilities […]

Best practices when it comes to confirmation letters

When in essence the confirmation letter procedure isn’t seemingly that difficult – you write a balance and ask if the other party agrees with it – there are however a few things we suggest to keep in mind when it comes to confirming accounts payable and receivable balances. First off as for the letter itself, […]

Confirming balances – accounts payable and receivable

During the normal course of business you buy and sell goods or services and as a byproduct, before the cash really moves, you have payables and receivables with their due dates on the balance sheet. When the balances are settled, they are as a result gone from the balance sheet. Balances come and go during […]