Bank Account Reconciliation: Myths that Pulling you Down

Bank account reconciliation is a very needy task for your business when your periodic reports are not up to the mark or facing discrepancies. Outsourcing your bank account reconciliation is the best option but the only hurdle that doesn’t allow you to outsource is communication and data security which is the main concern for any business. But nowadays, outsourcing bank account reconciliation is much better than an in-house employee without worrying about data security you can outsource bank reconciliation task and save your time and cost with 24-hour support services that too with accurate results.

Outsourced Bank Account Reconciliation: The Right Time to Plunge Into from Cogneesol

Accounting Fraud: How to Protect Your Small Business?

Various reports indicate situations of what can happen any time businesses depend far too much on their “trusted” bookkeeper. Examples of embezzlement, as well as fraud, can continue for many years before getting exposed, and usually, have a damaging effect that may place the entire small business in danger. Even though it is very unlikely to get rid of all threats linked to internal and external scams, following ideal procedures can considerably decrease threat within your company.

Put into practice a risk management system

The starting point of minimizing your company’s chance of fraud would be to put into practice a risk human resources department regarding their recruitment techniques to ensure they thoroughly scrutinize their employees.

management system. Senior administration has to make it clear—through their thoughts as well as actions—that absolutely no kind of dishonesty is tolerated. For ideal procedures, evaluate your insurance plan on a yearly basis to make sure you are guarded against internal as well as external thefts, thereby making certain that your accounting company is effectively bonded. Furthermore, talk to your

Have confidence in but validate by putting into practice proper internal controls

Although profitable finance companies encourage a culture of faith, employing sufficient control structures could certainly validate your employees’ activities. With the intention to minimize scams and error threats, churn out a segregation of tasks by dispersing business roles to more than one individual or division. For instance, have distinct people arrange and authorize new vendors, authorize bills to be paid, mark checks/initiate electronic payments, authorize new hires, authorize and modify pay scales, payroll processing as well as the reconciliation of bank accounts.

Everyone in the staff associated with handling the books and data of a business needs to be efficiently screened. Determine their work history, credit rating, and residence address and bankruptcy track record along with legal and civil court details. A lot of accounting professionals trapped in a scam are not prosecuted; hence they proceed to their next target. A complete background check will assist you to have an understanding of whether or not a potential employee corresponds to a high threat or low threat category.

Comprehend your numbers

With fiscal clarity, it gets far easier to recognize unanticipated expenditures or perhaps balance sheet problems that are sustained as a result of fraud by an accountant. That’s the reason why balance sheet reconciliation is essential and also a comparison of your finance-related results with the budget per month. Ensure that you:

• Run each cash receipt through a company banking account. Although it might appear simpler to make use of cash from the cupboard to cover petty cash, this method results in an atmosphere wherein money can readily be misdirected.

• Evaluate all bank as well as credit card statements. In the paper dependent community, it is suggested that entrepreneurs get the unopened bank statements instantly. In the digital environment, entrepreneurs can easily take a look at bank data on the internet on a regular basis and set up updates to inform them of any major or unexpected transactions.

•  Have a finance and accounting company assess your books on a consistent basis. A regular audit from an external finance company can make a substantial discouraging factor to scam.

• Handle your books on an accrual principle. To minimize the differences that happen to depend on the cash basis of accounting (documenting earnings whenever money is received and expenditures whenever checks are issued), make use of the accrual basis of accounting (documenting income any time received and expenditures whenever incurred). This helps you in identifying unforeseen results.

•  Balancing your balance sheet on a monthly basis. Although the majority of entrepreneurs comprehend the significance of reconciliation of bank accounts on a monthly basis, it is equally crucial that you reconcile balance sheet financial records on a monthly basis. Ensure that dealings on the balance sheet are correct; consequently, irrelevant items within these account balances do not hide the results provided in the cash flow statement.

• Make sure books, as well as records, are safely stored. Regardless of whether your data are stored electronically or perhaps in paper manner, ensure you close each and every financial period and secure up records so past activities should not be modified.

• Get rid of or secure up check stock. By making use of digital payment technologies, it is trickier to obliterate or conceal crucial documents. Whenever a paper is utilized, ensure all checks are accounted for by administration.

Scams happen more regularly than the majority of businesses understand. By making use of bookkeeping ideal procedures, not just will you prevent a staff member from committing fraudulence; you are going to get a more lucid outlook of your businesses’ financial situation.

Reconciliation of Accounts: Do You Really Need It?

Are you an entrepreneur OR Running an organization OR Witnessed some unwanted changes or miscalculations in your accounts?

If all these questions are relating your situation, then it can be an alarming time for you to pay attention towards your accounts. Checking out the accounts of your whole organization is really not a piece of cake. You might need to walk a mile extra to analyze the defaults and then make corrections in it.

Well, every organization has their own accounting department to deal with such matters. Before we move further start grasping knowledge over how to reconcile accounts, I suggest to take a look at the literal meaning of ‘Reconciliation of accounts’ and ‘Accounts reconciliation services'.

What is reconciliation of accounts?

The term  ‘Reconciliation of accounts’ is enough to make you understand that it relates to the affairs of accountancy. Basically, it is an accounting procedure where two different sets of accounting records (balances and accounts) are analyzed.

Generally, every nook and cranny expense of an organization  is kept in the accounts book, so the actual amount and exact expenses made can be looked for whenever required. When this account book holds the details of every major or minor expense of an organization or individual, then it should relate to each other at the end of the accounting period.

But apparently when things don’t go right in the expected manner, then putting your nose in between the accounting matters becomes a must.

Well, now when we have gathered enough information over reconciliation of accounts, now its time to know what ‘Accounts reconciliation assistance’ is all about?

If your accounting manager committed minor mistakes it can hit hard on your pocket. Always keeping an eye on the expenses of the organization can save you from going through such stressful circumstances. The basic motive of conducting accounting reconciliation assistance is to thoroughly check out the accounts book.

It is acknowledged as a verification procedure which is generally seen executed by highly experienced accountants only. In order to safeguard your financial condition, reconciliation after a particular time of span is a must to conduct thing.

Some scholar accountants always suggest to perform the reconciliation procedure over your balance sheet on a regular basis can help you wave off your worries at later stages of financial reporting. With the help of account reconciliation software, this process can be performed with greater ease.

Here is a list of a few of best accounting software which are recommended and used by almost every accountant. Take a look.

•      Pro tax

•      Sage Line 50

•      Peachtree

•      Quicken

•      IRIS

•      Xero

•     Quickbook

•     Netsuite

 By documentation reviewing- While practicing this process, initially the previous accounting documents are paying attention to. In general, this activity is acknowledged as ‘data collection.’ With this, analyses of the previous financial year documents are also executed. If done manually, this process can consume your never ending time, so it is wise to go for any above mentioned account reconciliation software that helps you get a better and faster access over data collected.

The analytic review- Here in this process two important aspects (previous information and estimated transactions) helps you completing the account analyzing procedure. Taking help of the previous year financial statements can really sort out things for you. Once all the data required is collected, then the next step is to perform the comparison activity among (financial and non-financial data information) which ultimately lets you have the clear results in front of you.

• Helps detect accounting blunders that can cost you hard if not detected at the right time.

•  Lets you have an overview of your whole year spending and savings too.

Usually, there are two different ways that are used to in order to conduct the reconciliation procedure. 

To perform this kind of analyses your estimation power should be good, as you need to estimate the last transactions on your account to make the balance sheet accurate. The estimation basically is made in accordance with the previous transactions. 

Is it really important to have a reconciliation of accounts done? What are its benefits?

Whichever is the method of reconciliation, the basic aim is to find out the faults and then correct them up. 


Want to reconcile bank account and credit card statements? We have a highly qualified and experienced team that specialized in reconciliation process. For more information please contact us at info@cogneesol.com.