Why a point-in-time reconciliation snapshot matters for audit, how it differs from a live Xero report, and what UK auditors expect to see for FRS 102-compliant balance sheet reconciliations.
Your Xero report looks clean today. But your auditor wants to know what the prepaid asset balance was on 31 March, and whether it was reconciled at that date. If you cannot produce evidence that the reconciliation was performed at period-end — not retrospectively — you have an audit gap.
A reconciliation snapshot is a locked, point-in-time record of: (1) the GL balance in Xero at period-end, (2) the total of your supporting schedule at the same date, and (3) confirmation that they agreed — or an explanation of any variance. It is proof that the reconciliation was performed at the time of close, not reconstructed later.
Xero reports reflect the current state of your ledger. If someone posts a journal entry in April to correct a March error, your March Balance Sheet report will change. Auditors know this. They expect evidence that the reconciliation was performed before the books were closed, not a report that may have been affected by subsequent entries.
Under FRS 102 (the UK financial reporting standard for companies that are not listed), auditors must obtain sufficient appropriate audit evidence that account balances are fairly stated. A saved, dated reconciliation workpaper is that evidence.
At period-end, export the Xero Balance Sheet report as a PDF or screenshot. Save it with a clear filename (e.g., "2026-03-31 Prepaid Assets Recon.pdf"). Record the GL balance, schedule total, and confirmation in a workpaper template. Get a second person to review and add their initials and date.
Manual snapshots rely on discipline. Teams under pressure to close quickly sometimes skip the documentation and intend to "come back to it" — which rarely happens. When the auditors arrive six months later, there is no evidence. This is one of the most common audit findings for UK SMEs under FRS 102 statutory audits.
CloseKit's Xero integration (coming soon) will capture reconciliation snapshots automatically at month-end — recording the Xero balance, the CloseKit schedule total, the reconciled/variance status, and a timestamp. No manual PDF export required. Get early access at getclosekit.com/signup.
If you can answer all four with a timestamped, signed-off reconciliation workpaper, the audit goes smoothly. If you cannot, expect more questions and more time spent reconstructing what happened.
CloseKit replaces your spreadsheets with instant balance sheet reconciliations. Start a free trial — no credit card required.
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