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5 Benefits of Monthly Account Reconciliation For Your Business
To run a business successfully, it is important to conduct monthly account reconciliation process at the end of every month. This ensures a better and flexible account handling throughout the whole month. The list of account reconciliation benefits is endless. Let’s dig a bit more into this concept and figure out its benefits.
What is accounts reconciliation?
Cash amount preserved in your account is one of the most precious liquid assets for you and your business. This can be easily theft or misused, if not safeguarded in the right and desirable manner. To figure out where you are lacking behind in handling your accounts book, all you need to do is to analyze the practices which are affecting or unbalancing your account management. All this is possible with the accounts reconciliation process.
Why should I go for accounts reconciliation?
Being a higher authority or the business owner, sparing time to look into his/her accounts can be challenging. However, it is always better to pay some concern towards your finance rather than ruining it by your tricky accounting department.
As we have learned enough about the monthly account reconciliation process, now its time to take a look at how your business gets benefited with such services.
Eradicates accounting errors
Catching errors or blunders done by your accounting department becomes easy with the monthly accounts reconciliation process. It brings out the nitty gritty of the accounts and eventually gives you clearer vision and better vision of your accounts book.
Secures business deposits
Due to some human errors, you might get a chance to witness an amount deposit error at the time of reconciling your accounts. But, if the required amount of concern is paid to the accounts book and a proper procedure of account reconciliation is conducted throughout the month, such embarrassing circumstances like- lack of cash at the time of dealing with other businesses can be avoided.
Simplifies the bill paying
Being busy with his/her hectic schedule, often a business owner forgets to pay off his/her bills at the end of the month. To get rid of this, business houses usually go for automatic bill deducted from their accounts. Though it might simplify their bill paying process, sometimes leaves their account either overdraft or with a missed payment.
To a wave of such circumstances, the execution of account reconciliation seems a great option. It saves your accounts from overdrafting or cheating from your own accounting department.
This is one of the most attention-grabbing aspects which never goes unnoticed because everyone looks for adopting different ways which somehow supports them managing and saving their money, especially when you are running a business house.
Sometimes, you often are not aware of the different kind of bank charges or taxes, which deducts from your bank without your consent. As the bank consider it as ‘bank fees’, leaving us no other option rather than paying them off.
But, it is important to be aware of the details of such bank fees which is possible with the account reconciliation process. It lets you know about the details of other tax deduction as well, which if not needed can be canceled. Due to this, you are able to get back a certain amount of money to your account.
Help to analyze unauthorized transactions
Lack of concern towards your accounts can motivate your employees, vendors or other people who are associated with account management to perform unwanted or unauthorized transactions. Sometimes, it is your trustworthy employees who perform personal transactions at the name and expenses of the business. To avoid such things, adopt account reconciliation.
If your bank statements or balance sheets do not match, we cannot always blame the accounting department for the same, as there could be some other reason for it. Here are the reasons for the same. Pay concern.
Imbalance due to depositing amount
If you do not deposit a certain amount every month, this somehow increases the chances of mismatching accounts. To avoid it, keep track of deposit amount every month.
Deduction of bank fees and other taxes
In the high majority of cases, it is your bank fees and taxes that generate issues in the balance sheet.
Reap all the above-mentioned benefits of account reconciliation with Cogneesol’s highly dedicated and skilled professionals. We provide unmatched accuracy when it comes to reconciling accounts at affordable prices. To know more, contact us at +1-646-688-2821 or write to [email protected].
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