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: