Accounts reconciliation services will keep the banking and financial accounts in order. It is the process of comparing monthly financial transactions of your company with the monthly bank statements. Reconciliation will help to identify and explain the discrepancies between the entries in your accounting system and the corresponding transactions in your bank or credit card statement.
It will give you the full transaction details in a glimpse to find any discrepancies and to take remedial measures in a time-bound manner. Reconciling statements though might seem like a mundane task is easily one of the most effective ways to spot errors and verify cash flow. Most businesses that adopt a lackadaisical approach in account reconciling may end up losing their grip over the finances.
Every business owner is responsible to ensure that their expenses and deposits are accurately reflected in the bank statements at the end of the day to verify any omissions or errors. From promotional budget to overheads and employee payroll, every penny should be strictly accounted for and records for every transaction are maintained. Proper and systematic maintenance of business documents is of vital importance to any business.
Here are Some of the Steps of Account Reconciliation Services
Get a copy of the current account statement that you are reconciling.
The closing balance of the previous month should be the opening balance of your statement.
Mark all deposits, checks, and other transactions including payments that are still not deposited or uncleared checks
After reconciliation, the figures in your account books and banks statements should be the same. If you find any differences, review the transactions again to find what went wrong and where.
By completing these tasks, you will get a crystal clear picture of the financial status of your business and can be doubly sure that all the transactions are valid and posted in the correct accounts. Reconciling your accounts will help you to ensure the much-needed transparency to your business dealings and will prevent any legal issues.
Here are the reasons why your business needs monthly accounts reconciliation services
Eliminates accounting errors:
Accounting reconciliation is a great way to keep your financial records identical to the bank records and to find out errors. Though, the business owner might not be able to spare time to look into his/her accounts, account reconciliation will help him to get a clear view of the cash flow statements and not get tricked by his employees of the accounts department.
Keep track of the business transactions:
Accounts reconciliation services will help you to keep a track on all the transactions including delayed payments and checks that are not cleared past the due dates. It will help you to ensure that the account has adequate cash balance.
Keeps your business deposits correct:
Reconciliation will make sure that the deposits are all credited properly in the bank statement to manage cash flow properly.
Keeps your bills paid:
By carrying out account reconciliation, you can keep track of all the bill payments and reconcile balances each month will prevent the risk of missing a payment.
Bank reconciliation will give a clear idea of all the hidden fees and bank charges that you might be paying and will give you an opportunity to cut down on the charges wherever possible.
Check unauthorized transactions:
Only close monitoring can prevent unauthorized access to accounts and misappropriation. As there will be many employees, vendors and other people who have access to the accounts only a proper reconciliation can pinpoint unfair transactions.
Account reconciliation can be a time-consuming task that requires a high level of accuracy and deftness. If you are hard pressed for time, it is better to assign this task to the accounting professionals so that you can focus on your core business operations. Be in total control of your business by getting your accounts reconciled by us. We have a team of skilled accounting personnel who can help your firm become financially stable.