Reconciliation is the step most founders skip — and the one that causes the most pain during audits. Here is a monthly checklist we include in every segregation plan.
The first-business-day routine
Set aside 90 minutes on the first business day of each month. Assign one person as reconciliation owner (typically CFO or finance lead).
Step 1: Pull balances
Record the balance of each wallet and account as of the last day of the prior month. Use your own records — on-chain verification is optional but recommended quarterly.
Step 2: Match to ledger
Compare each balance against the corresponding general ledger entry. Flag any discrepancy greater than your materiality threshold (we recommend 0.5% of total reserves or ₩500,000, whichever is lower).
Step 3: Document transfers
List all transfers that occurred during the month. Each transfer should have a stated purpose matching its reserve category. Transfers without documented purpose are flagged for review.
Step 4: Sign off
The reconciliation owner signs the checklist. If discrepancies exist, they are escalated per the segregation plan’s escalation procedures before the checklist is filed.
Common mistakes
- Reconciling only bank accounts and skipping cold wallets
- Using different dates for wallet balances versus ledger entries
- Failing to document the purpose of inter-wallet transfers
- Letting reconciliation slip when the team is busy (this is when discrepancies compound)
When to get help
If your reconciliation consistently shows discrepancies you cannot explain, or if you have never reconciled cold wallets against your books, a wallet review will identify the root cause before it becomes an audit finding.