Sarcouncil Journal of Economics and Business Management

Abstract: General Ledger (GL) reconciliation is a fundamental control in financial reporting, which is critical for accuracy, transparency and reliability of accounting records both in public and private sectors. Yet, the continued reliance on manual processes, outdated technology and inconsistent reconciliation standards have resulted in systemic weaknesses such as financial misstatements, regulatory exposure, operational inefficiency and trust among stakeholders. These deficiencies are exacerbated by increasingly intricate and internationally linked financial systems, which further increase the risks to both an institution’s performance and overall stability. This study reinforces the idea that modernization is not an engineering luxury, but rather a strategic necessity. The research is lighting on automation, RPA, AI, blockchain and Cloud-based ERP platforms which enable a transformation of reconciliation from a periodic error prone task to a continuous proactive and highly reliable financial control. These results also underscore the importance of governance reform, data standardization and effective change management in sustaining gains from technological innovation. Barriers that are specific to sectors, for example lack of resources and procurement difficulties in the public sector or integration and cyber-security risks in the private sector require both a bespoke response with regulatory cooperation and cross-sector measures. Finally, up-to-date GL reconciliation systems are poised to strengthen organizational agility, increase transparency and secure the integrity of a financial ecosystem. By combining sophisticated technology and strong governance, institutions will be able to minimize systemic weaknesses, enhance transparency and construct a more sustainable and trusted financial reporting ecosystem.