Maintaining the accuracy of the financial statements is of great importance for a business firm. Bank account reconciliation process plays an important role in this regard. By using this process, the reasons behind the difference between the bank statement and the financial statement of the firm are understood and the corrective measures are undertaken.
These disparities in the statements mainly occur due to human errors like missing some of the financial transactions etc. In order to ensure that the financial records are in proper order, the accounting reconciliation process should be carried out periodically.
Steps to improve your bank account reconciliation process
Use the latest software
Nowadays, various software like Netsuite, QuickBooks are available which can perform the bank functions in a prompt and effective manner. Using these software can help in relieving the burden of the accounting staff and help in improving their efficiency. It will also ensure that the dates and bank balances are entered correctly.
Use the outsourcing option
Outsourcing the account reconciliation process along with other accounting functions will ensure that these functions are carried out in a professional manner. Outsourcing firms guarantee that the reconciliation process is carried out without any mistakes. They possess an expert staff and the latest technology for delivering high-quality results while adhering to deadlines. This also provides the opportunity to use the staff for core activities.
Carefully check the statements
The various entries in the financial statements should be easily checked. In the end, the balances of the assets and liabilities should be similar. The errors should be corrected properly.
Manage the outstanding checks carefully
While recording the outstanding checks or deposits, precision is required. Time variance is an important factor which should be taken into consideration.
Perform the process at least once a month
By performing this process once a month you can ensure the accuracy of your accounts. This will not only help in avoiding mistakes but also ensure that the higher management has access to the right data for future financial planning.
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