It will be appreciated if anyone can advise on the best practice for reconciling the balance on the suspense account. I work in not-for- profit organization and I discovered that suspense accounts are not reconciled for as long as it takes to research the source of the fund or donation.
Comment on the best practice or standard will be appreciated
In the end the best practice would likely be not to have suspense account. But since that is probably not the help you were looking for. What you should consider is how much activity is in fact going through the account. If it is made up of primarily immaterial and insignificant items.. you don't have to worry about it too much. If on the other hand there is significant transactions... then it should be reconciled just as frequently as all of the other accounts (i.e. hopefully monthly).