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Account Reconciliation Services For Your Business Security
Proper and accurate record keeping is vital for any business irrespective of its size and structure. It is mandatory to have financial statements that reflect the actual picture of a company’s operation. That’s where bank account reconciliation comes into the picture.
However, it is not always because of any fraudulent intentions. Many business overlook maintenance of accounts. Your books require a high degree of professional expertise – something which cannot be vouched for all. Furthermore, in mid-size businesses, it can even be full of complexities. This is because of a large number of accounting heads that have to be tallied against each other.
What is the takeaway then? If accounting functions are not one of your core competencies, outsourcing account reconciliation process. You can hire a specialized agency to ensure account accuracy and improve the efficiency. You can then channelize all your resources towards your core activities while experts look after your books.
Account Reconciliation Steps to Safeguard your Business
Updated account reconciliation helps to quickly track any discrepancies and rectify it. If you overlook accounting errors it can lead to the wrong compilation of reports. In case, your business submits to the statutory and regulatory bodies, you’ll have to fines and penalties.
Eliminating fraudulent transactions
Continuous reconciliation of accounts goes a long way in doing away with fraudulent transactions by unscrupulous elements within. It also insulates your business interests from risks of scams which otherwise can lead to disastrous consequences in terms of loss of credibility before both customers and investors.
Enabling precise auditing of accounts
If your accounts are kept thoroughly reconciled at all times by proficient outsourced account reconciliation services; it facilitates precise auditing and finalization of your accounts. This is very important both for your shareholders and lenders as it reflects a true picture of your operating efficiencies.
While no account head is a standalone feature and each is equally important in the overall process of preparing financial statements, two important facets stand out that requires special attention from you.
Bank account reconciliation
Your business books cannot be a mirror image of your bank statement. This is due to posting same entries at separate times in two different journals. A check issued by you is immediately debited from your company’s records while it can be presented by your client to the bank even after a month for debit.
Therefore there will be an inflated amount in the bank as per your records. Again, a check received by you will clear an outstanding debt payable to you immediately in your books but will take awhile for the actual amount to be credited in your bank account. This reconciliation process if kept in cold storage for long will not give you a fair idea of the state of your business and might lead to wrong estimates of payables and receivables, thereby disrupting your business.
Credit cards reconciliation
This is similar to reconciliation of accounts with your bank statements. Not having it done will result in the possibility of either drawing on your account beyond permissible limits or underestimating your financial strengths.
In all cases of outsourcing, whatever industry it might be, the goal is common to all – reducing costs, enabling increasing attention to core competencies, negating the need to hire highly paid accounts manpower resources and eliminating investments in expensive infrastructure systems. Given its importance, you’ll do well to decide on the type of account reconciliation services that will work best for you.
Comprehensive reconciliation services
All that you have to do is to inform the outsourced agency of your transactions like checks issued and received and the clients’ accounts they pertain to. They will carry out a detailed matching process with the bank statements and issue you reports periodically so that you are always in the loop about the state of your business.
Partial reconciliation services
Request for services that you require. This might include only checks paid or deposited, a position of stopped checks or any other information that you think will permit you to run your business smoothly.
Since account reconciliation service is so crucial for your organization, always make sure that you delegate the task to a reputed agency with long years of experience in this field.
Secure your finances and maintain them proficiently with Cogneesol’s account reconciliation services. Our accurate reconciliation will help you gain valuable insights into your financial data to make better strategic decisions for business growth. Contact us today to get started with your free trial.
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