1000+
customers

50+ countries
across the world

Outsourcing leader
since 2008

Technology-driven
services

Stringent
quality processes

How Accounts Reconciliation Services Can Simplify Your Monthly Accounting?

Last updated: 26 Feb, 2020 By | 6 Minutes Read

All successful businesses are based on the premise that their accounts are fully balanced periodically and the balance sheet reflects the true state of the financials. If this is not so, even the greatest of exponential growth and development comes to naught because the foundation of the business is weak. However, reconciliation of accounts is not an easy task. Hundreds of vouchers and invoices have to be processed every month and this consumes precious resources, both in terms of manpower hours and investments for setting up necessary accounts processing infrastructure.

The alternative then is to opt for professional Accounts Reconciliation Services that are not only affordable but offer top of the line bookkeeping solutions. By deciding to outsource, a lot of benefits can be had. Complex accounting procedures need not be monitored by you in-house, leaving you free to focus on core competencies.

How then does outsourcing help to simplify the monthly accounting process?

Accurate Bank Reconciliation

This is so crucial that this one activity almost comprehensively takes care of total monthly accounting functions. The bank statement is received by you every month and all entries there have to be set off against those in the cash book. But this is easier said than done as certain entries, especially those that pertain to dates near the end of the month, are not accounted for.

You issue a check by crediting cash but that is not presented in the bank by the vendor. The bank figures will, therefore, reflect a notional inflated amount. You will be wrong if you were to take this bank balance as your true cash-on-hand. Outsourcing agencies will meticulously ensure that all bank transactions are accounted for in your cash books. This one process will greatly simplify monthly accounting functions.

Ensure Balancing of Heads of Accounts

While monthly bank reconciliation is done every month, there is a spin-off advantage too. Under double entry system of account maintenance, every entry is set off against another. An example will help understand this better. A vendor payment is made by debiting a profit and loss head and crediting cash. A check is issued which is en-cashed through a bank.

Thus if the cash book is balanced, profit and loss entry is also correct. Hence account reconciliation services ensure that different heads of accounts are simultaneously balanced at the end of the month.

Speedy Rectification of Discrepancies

Any discrepancies in entries or processing are identified and rectified every month by the outsourcing agencies during the reconciliation process. Hence, you can be sure that the financials on which you base vital business decisions are accurate and precise. This also facilitates the audit process as all reports and statements are perfect in every respect. It is also proof that no fraudulent transactions have taken place in your business.

These are some of the reasons how you can simplify the monthly accounting process by spinning off accounting functions to professional agencies.

Do you wish to have your monthly account reconciliation done in an efficient and accurate manner? If yes, look no forward than Cogneesol! We are one of the leading outsourcing providers of account reconciliation, having a dedicated team of professionals, and serving clients worldwide since 11 years using the best technology. Contact us to ask for a quote now!

Also Read: Importance of Cash Reconciliation and Cash Forecasting For a Business

Latest Blogs

Virtual Bookkeeping: Everything You Need to Know [Infographic]
Read More
blog-img

Practical Ways for Lawyers to Be More Productive [Infographic]

Read More
blog-img

A Comprehensive Guide to Setting Realistic Revenue Goals for CPA Firms

Read More
blog-img

Role of BPO in the Insurance Industry: Experts Opinion

Read More
blog-img

Boosting the Accounting Function: A Guide for Restaurant Owners

Read More
blog-img

Top Tax Planning Strategies to Follow in 2022

Read More