An Insight to Bank Reconciliation & Its Significance

Meaning of Bank Reconciliation..It is a report which compares the bank balance as per company's accounting records (Record Book) with the balance stated in the bank account statement (Bank Statement) . Bank reconciliation is a great way to find typos, missing transactions, and duplicate transactions that could lead to inaccurate reports.

Record Book &

Bank Statement

Company Record Book : It is a book or register

maintained by company to keep record of receipts and payments of money

List all the deposits and withdrawals that company had in specific period of time.

Bank Statement: A bank statement is a summary of

financial transactions which have occurred over a given period on a bank account held by a person or business.

Once in a month, this bank statement is issued by bank to its customers holding account

What Record Book tells : List all the deposits and cash withdrawals made by company in given period of time.

What Bank Statement tells :List only those deposits and withdrawals that had been processed through banks.

Steps to Prepare a Bank Reconciliation

Step 1:Collect all the documents that are required to prepare the reconciliation . The important documents for this purpose would be register in which record is maintained every month and the bank statement received from the bank.Step 2:Identify difference between cash book and bank statement.Step 3:Make list of items that has been recorded in the account book but not there in bank statement .

Step 4:Any Debits that have not been accounted for, will need to be deducted from the balance on the bank statement. Likewise, any credits that have not been accounted for will be added to the balance on the bank statement.

Step 5: Make appropriate additions or deductions to correct errors.

Step 6:If the balances match, then post all the changes and close the segment, otherwise repeat this process until the balances are equal.

Enlarge this Image to view Account Reconciliation Process

Bank Reconciliation Process

Need And Importance Of Bank Reconciliation Statement

Identifying errors in the accounting records of the company or the bank accounts.

Assists in Regular Monitoring of cash flows of a business.

Check on accuracy of entries made in both accounting records of the company or the bank.

Delay in collection of cheques or non-payment of cheques can be brought into light.

Have you faced errors or setbacks while Reconciling your Bank Transactions?

If yes, then let Cogneesol help you… Find out How!

Overview Of Account Reconciliation Services By Cogneesol

Full and partial reconciliation Reconciliation of Accounts Statements for your internal

finance data Reconciling your internal finance data with the client’s credit

card bills Reconciliation of vendor invoices with your general ledger Reconciling bank statements with the records managed by

your company Creating bank reconciliation reports Credit card services - Enhance your cash flow, recuperate

unsettled payments as well as keep track of accounts for overdue payments

Who All NeedBank Reconciliation Services?

Individuals

All Businesses (Small, Medium or Large Scale)

Why Choose Cogneesol for Bank and Credit Card

Reconciliation?

They provides consistent and accurate data that can be conveniently employed in decision-making process. Consequently, this ensures proficiency in workflow and there is absolutely no wastage of time.

Persistent Data Source

High-end SecurityRobust data security to make sure your data is safe and secure with us.

Get Most Out of Your Return on Investment

Cogneesol provides a substantial cost reduction and offers you high ROI. We focus on giving level of quality, business value, profits, and much more.

You will get premium quality work in accordance with your requirements and that too at affordable rates.

Best Quality Work

Contact Us Email : info@cogneesol.comVisit us at :https://www.cogneesol.com/Call us : +1 646 688 2821

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