Useful Tips To Improve Bank Account Reconciliation Process
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Usually, businesses keep a casual approach while reconciling their bank accounts. However, doing it regularly with uttermost care can reveal things that won’t be visible otherwise. Though reconciliation is a small accounting practice, it is necessary to ensure financials' accuracy. So let’s get some help for its betterment.
Tips for Improving Bank Account Reconciliation
Begin with Separating Duties If you don’t separate duties, you leave your business vulnerable to overlooked mistakes and the potential for fraud. Therefore, the individual entering information and the person reconciling the accounts should be different to ensure no fraud goes undetected.
Utilizing AllInclusive Features Bank reconciliation shows red flags that help detect occupational fraud, monitor lost checks, and search deposits that didn’t reach the bank.
For this reason, many businesses and CPAs use QuickBooks’s reconciliation feature. It provides an allinclusive menu showing old items that might be causing losses. In addition, reports like Reconciliation Discrepancy Report, Transaction Detail Report, and Discrepancy Report can be quickly reviewed.
Rapid Reconciliation for Optimized Results
The main reason for frequently reconciling accounts is to monitor cash flow effectively. Irrespective of whether you use cash or accrual accounting, bank reconciliation tells the exact amount of cash flowing in and out at a particular time. Frequent reconciliations also help monitor key performance indicators through the month and catch accounting errors quickly to avoid overdrafts.
QuickBooks for competent reconciliation With QuickBooks, your accounts can be reconciled as often as you want. After acquiring the statement, click on Reconcile under the Accounting tab of QuickBooks.
Once done, there should be no difference between the account statement and QuickBooks record to ensure zero outstanding items.
You can review each transaction from the Reconcile screen. First, compare the record on the statement to the record in QuickBooks. Then, strike off each item in QuickBooks that is cleared correctly.
Enter the statement’s end date and ending balance on the Reconcile page.
Yes, you can reconcile your accounts on your own. However, with potentially limited time and resources, you may miss some major advantages of bank reconciliation that a professional QuickBooks accounting service provider can take.
Therefore an excellent practice would be to take the assistance of a competent accounting service provider like Cogneesol. Because at Cogneesol, we have been providing efficient bank account reconciliation services and other quality accounting services at cost-effective prices to our clients since 2008.
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