Haiku Solution provide account reconciliation services for all kinds of businesses be it small-scale businesses, medium scale, corporate houses, or large-scale businesses like MNCs. Our specialized services can assist in preventing legal issues, avoid fraud and help you concentrate on your primary business goals. If you don’t know what account and bank reconciliation are, we will let you know about this, it is the act of confirming whether the account balance (actual) matches the corresponding bank statement. It is essential for the financial health of small, medium, and large companies. By analysing the accuracy of each account, our bank reconciliation team of experts identifies the errors, isolates any inconsistencies requiring correction, and resolves the differences in the final balance accordingly.
Depending upon the structure, size, and types of business goals, organizations often require various account reconciliation solutions and services. In order to take care of these accounting needs, Haiku Solution provide its huge range of bank reconciliation services to its clients globally.
Bank Reconciliation
Bank reconciliation is the process in which the integrity of data company’s financial records and bank records are verified accurately. This process starts with matching the balances in the company’s accounting records to the corresponding information for the cash account on a bank statement. Therefore, we can say it is a crucial process that can sometimes become too monotonous and long.
When do you need to Reconcile?
Reconciliation of bank accounts should be done every month when the bank statement is generated or comes in the mail. It helps in examining and reviewing the income and expenses and helps in comparing what the bank has recorded and what you have in the records. Bank reconciliation services are important for all kinds of businesses so you can keep track of your records. Therefore, it is necessary to prepare the bank reconciliation statement each month so that it does not become a burdensome and inconvenient process at the end of the year when is the time of closing the books. There are many organizations that do not have sufficient knowledge about this process and thus, they consider this process quite tedious and cumbersome, hence bank reconciliation services are generally outsourced to other third-party companies.
How can you reconcile?
When a bank statement is generated, you can start comparing the transactions that took place in your bank account, to your check register for the same period. Both the register and the bank statement should have the same number and identical transactions. The primary purpose behind preparing a bank reconciliation statement is to match each line in the register with the bank statement.
- 1) Unpresented cheques – Whenever there is any cheque issued by the organization, there are entered quickly on the bank column of the cash book on its credit side. On the other hand, the receiving person may not present the cheque on the same date. Therefore, this causes the difference between passbook and cash book as the bank debits the organization’s bank account only when a cheque is presented for payment by the receiver.
- 2) Unrealized cheque – Cheques when deposited in the bank are debited immediately by the firm which in turn leads to an increase in the bank statement. Whereas the bank credits the other firm’s account when a cheque is realized. Since the realization of cheque by the bank takes some time like a few days, therefore there is a difference that remains until these cheques are cleared.