IT tools are key to optimizing bank reconciliation processes.
Automatic bank connection makes it easy to cross-check both types of data.
Bank reconciliation is one of those tasks that make accounting and cash management easier . However, it can be time-consuming. It is wise to consider whether you are doing it in accordance with the possibilities offered by current technology.
Studying the protocols with which you carry out bank reconciliation can therefore be considered an investment. In particular, analyse in detail whether you use the croatian email list appropriate tools to promote order and the proper use of human resources.
Start of marked textTWEET IT! How do you handle bank reconciliation? Take note of the best tips to carry it out in accordance with today's technological possibilities!End of marked text
What is bank reconciliation?
This is a task that aims to compare banking and accounting information in order to determine whether they are consistent. If they are not, it may be because one or both of them are incorrect in amounts, dates, concepts, etc.
In this sense, it is not enough for you to just have the sums match throughout the period. In addition, the dates must match . For example, imagine that you have had a significant bank transaction before the end of the year. If the accounts show it as being from the following year, the error would be distorting the accounting closing .
A good balance in the bank reconciliation is a prerequisite for everything to be in order. From there, you need to continue doing other types of checks.
In any case, the fact that the accounting and banking data match is no guarantee that everything is in order, but it is a prerequisite . If there is a discrepancy, it is a sign that something is wrong, but there may also be errors that have led to an incorrect payment.
Imagine, for example, that a client has paid you less . You may have reflected the cash flow in your accounts exactly as you received it. There is no discrepancy. However, in reality you should have taken steps to collect every last cent of what they owed you. And, of course, if the initiative had been successful, this should have been reflected in your accounts.
Bank Reconciliation Example
Suppose that on March 1 you have an accounting entry in which you have debited the customers account for 1,210 euros, with a credit to sales for 1,000 euros and to the Treasury, VAT charged for 210 euros. Three months later, on June 1, you have an entry in your accounting in which you debit 1,210 euros in the bank account with a credit to the customers account, for the same amount.
So you are interested in knowing if it is true that you received a bank charge for the same amount that day . To do this, you will have to examine the corresponding bank statement and confirm that the transaction took place on the dates and figures indicated.
You can do the same with all entries involving bank accounts, whether they are collections or payments. Conversely, if you have the statements, you will want to check that they are correctly entered in your accounting.
