A business must keep its financial records straight and accurate, irrespective of its size and structure. Move with the reconciliation of every business accounts, and if you are unable to handle it, you can have external reconciliation services for your business. They will provide you proper assistance of account reconciliation services for your business.
Basically, reconciliation means two tallying the two different documents, tends to have the same data or make them agree to the same number.
|The best example of account reconciliation is matching up of bank passbook with your cashbook.|
An actual picture of the firm is largely shown in its account’s books, showing all the business activities and operations. However, if you miss out maintaining the business accounts, then it is not termed as done with a fraudulent intention.
This is because maintaining every bit of the accounts requires a special degree of experts on the part of the accountants.
Further to add, in a small-sized business, it can be a bag-full of complications, as there are numerous accounting overheads. Every overhead has to be tallied with each other to come to an agreeing number.
Why A Business Should Go for The Account Reconciliation Services?
You must undergo reconciliation services for your business. We will tell you why account reconciliation services are relevant:
1) Put an end to all of the discrepancies
When your account books are up-to-date, they will speak by themselves. This is because, when your books are updated, it becomes an easy game to find out any discrepancies. Easy to find the discrepancies, it becomes easy to rectify it.
If it remains undetected for long, it can lead to a wrong compilation of financial reports, which is not good. As these financial reports are submitted to statutory and regulatory bodies, who can impose fines when they found out the mistake.
2) Deleting the fraudulent transactions
If your accountants go by the continuous reconciliation of your business accounts, then the pile of unscrupulous transactions can be easily eliminated.
Your business will also get protected from any risks of scams which otherwise can lead to a colossal loss to the business credibility.
You can lose your loyal customers and investors if they come to about the unscrupulous transactions in your accounting books.
3) Precise auditing of accounts
Precise auditing of accounts can be there if your accounts are kept thoroughly reconciled. A question of any discrepancy will not rise then, as the accounts are well-maintained.
Gradually, this will raise your business image in front of the shareholders & lenders. As its only your accounting books that guide them to believe in your efficiencies of business operations.
Each and every business account must be equally audit as other accounts are. The precise auditing of these accounts will assist in generating error-free financial reports and statements, two important facets stand out that requires special attention from you.
Different Types of Accounts to be Maintain
Gradually, your every business account must be audited properly; nothing to left behind. The main accounts which must get priority are:
1) Bank reconciliation services
There will always be a variance of the amount between your cashbook and the bank statement. Both cannot show the same image without being tallying up with one another. This is due to posting the same entries at separate times in 2 different accounting journals.
Various cases of Bank Reconciliation
Deposit received, but not recorded: You have received deposits and recorded it on your cashbook, but it was not recorded on the bank statement.
- Outstanding checks: You have issued checks to your creditors but the payments have not yet come into the scene.
- Bank fees: There is a number of fees that a bank deduct for the services they offer to customers. Unfortunately, these amounts usually go un-noticeable.
- Interest income: Generally, banks pay interest amount on some bank accounts in a definite period – quarterly or yearly. It solely depends on the bank.
- Bounced Check or Not sufficient funds (NSF) checks: For example, you went to deposit a check into an account. But when you deposited the check, then you came to know that the account of the issuer of the check has insufficient amount to pay it. In this case, then the bank will reduce from your account the check amount which was previously credited. The check is then returned to the depositor as an NSF check.
2) Credit cards reconciliation services
This reconciliation holds the similarity with the bank reconciliation statement.
The common goals credit card reconciliation services must serve are:
- It should help in making cost numbers down
- A focus must be on raising awareness to core competencies
- Put an end to hiring highly paid accountants to manage business accounts
- A full end to invest in expensive infrastructure environments
- How to Forecast Revenue
All reconciliation services certainly hold its own importance. The sole decision is on you to decide as which type of account reconciliation services will do wonders 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 report 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 operate this task with caution.
We will certainly say that every business account must get audited by a professional accountant.
The reason behind this is if you miss something relevant from your books, and it has been submitted to the concerned authorities. Then, it won’t reflect a positive picture for you and your business, because the federal and state government can charge you for this.
Be double sure that your every accounts and ledger are maintained and up-to-date.
And if your unable to do this, due to time or man-power constraints, you can hire reconciliation services for your business, who can do everything on your behalf.
At Accounts Confidant we take care of your needs and assist you as we know that as an entrepreneur, you are juggling with various tedious tasks like reconciliation services, so when it comes to accounts reconciliation services, in case you feel like you have any further doubts related to this topic, kindly contact us today without any hesitation by calling us on our customer service number +1-866-301-2307.