What is tick and tie?

Tick and tie is a common accounting practice used to ensure the accuracy of accounts payable and accounts receivable. This involves reviewing and reconciling financial records, including bank statements, invoices, receipts, and other documents to ensure that all transactions have been properly recorded.

The term "tick" refers to the process of marking each transaction in a financial record with a checkmark or tick mark. This helps accountants and auditors keep track of which transactions have been verified and which ones still need to be reconciled.

The term "tie" refers to the process of reconciling the balances in different financial records. This involves comparing balances in bank statements with balances in accounting ledgers and making sure that all transactions are accounted for. Any discrepancies are investigated and corrected.

Tick and tie is an important accounting practice that helps ensure the accuracy of financial statements and prevents fraud. It is particularly important for businesses that handle a large volume of transactions or have complex accounting systems.