Bank reconciliation is a method of comparison done between the accounting records of a company regarding the bank accounts and the modification made to the bank accounts themselves. The bank reconciliation is a needed process for companies to undertake but this can be extremely long and tedious. To do a bank reconciliation the cash balances on the balance sheet should be matched with the corresponding amount in your bank statement and determine the difference between the two statements. Based on the records, the discrepancies are tested & solved by identifying the fraudulent transactions. Here are some tips and tricks to enhance the efficiency of bank account reconciliation services and save a lot of time.
Firstly, it is important to have all the required information and documentation in hand. Like in a jigsaw, you would identify the incorrect spot, missing or in the wrong place, by taking a look at the overall view of the pictures. In case the information has not been recorded before you start the process, you have to search and make several attempts to complete the piece of information.
Start claiming the documentation for the right people. For instance, there may be some receipts missing for the travel of a salesperson and expenses. You should ask them and find a record for the information.
Tills are a major part of a company’s finance and if they are not taken into account, the process of bank reconciliation will become much more difficult. It is a great idea to have a regular triple reconciliation by using the actual cash, a balanced book, and also the accounting balance. By doing all this you can reduce the chances of mistakes happening.
It is a great idea to start the bank automatic reconciliation process by cross-checking the balance from the previous month. If necessary, the reconciliation process can also start using the balance from even before. This method is highly useful in case a transaction has been entered into the account at a date before when the previous tally was made. By doing this, if an error is identified there will be no need to go through everything item by item. You can check the sections to find out the month that has discrepancies.
Though it is not common, the banks can make mistakes. They might make a mistake while entering the debit amount or a deposit that doesn’t correspond. If you find an error without explanation consult your bank.
A robust reconciliation solution from Finacus Fincore is simple, quick, and automated to enhance the accuracy of processing financial transactions that take place through various delivery channels.
For a streamlined and seamless and seamless reconciliation contact Finacus, the top-notch provider of software solutions. Get the real-time experience of FinCORE by asking for a demo from our executives.