All You Need to Know About Bank Reconciliation

1. All You Need to Know About Bank Reconciliation

2. In today's e-banking, many people believe that completing a bank reconciliation is no longer necessary. However, small business owners and bookkeepers should remember that yes, banks do make mistakes, and one of the best ways to find those mistakes is by reconciling all of your bank accounts on a monthly basis. • Completing a bank reconciliation involves matching the balances on your bank statement with the corresponding entries in your accounting records. The process can help you correct errors, locate lost funds, and identify fraudulent activity.

3. It is true that most accounting software applications offer banking connectivity, which can greatly speed up the reconciliation process. However, connecting your accounting software to your bank or financial institution is not a substitute for end-of-month bank reconciliation. • In this guide, we'll explain exactly why doing a bank reconciliation is so important and give you step-by-step instructions on how to complete it.

4. Summary: What is bank reconciliation? • A bank reconciliation helps ensure that your final bank statement and general ledger account are in balance. • Remember, your cash or bank accounts on your general ledger should reflect the same activity that is on your bank statement using digital reconciliation solution. If not, you must determine what is missing. Find out if the bank statement balance or general ledger balance is missing, and then reconcile the two numbers.

5. How to Do a Bank Reconciliation • Most business owners receive a bank statement, either online or by mail, at the end of the month with general ledger reconciliation solution. Most business accounts are set up to run monthly, although some older accounts may have an end date in the middle of the month. • If that's the case, the account statement can still be reconciled, you just need to run a general ledger report that ends on the same day as the bank statement. For example, if your bank statement period is from 01/11/2020 to 02/10/2020, you would run a ledger or trial balance for that same period. • Fortunately, many accounting software applications include a bank reconciliation template or form in the application, allowing you to easily reconcile any of your bank accounts that are connected to their software.

6. Bank reconciliations are essential • Among the various accounting terms and processes you need to understand, such as preparing a budget or tracking business expenses, perhaps one of the most important is completing the bank reconciliation process for all of your active bank accounts. • Designed to keep your bank and G / L in balance, the bank reconciliation process also helps you correct potential errors, post uncashed checks, and even locate missing deposits. Don't underestimate the importance of this very important tool. • However, for those who prefer not to connect their bank accounts to their software, or for any business that uses software that does not offer a connectivity option, here are the steps to reconcile all of their bank accounts.

7. About Us • CAMS Recon DynamiXis a robust, fully automated software for seamless reconciliation of general ledgers, payments and transactions bringing operational efficiency and ease to the complex activity of payments and settlements. Errors are detected before they become problems, delays and attendant risks are driven down. Data translation, rules-based matching and investigative tools enable real-time analytics to monitor multi-level process status at enhanced speed, transparency and security. • Website - https://www.camsonline.com/Business/Reconciliations-Recondynamix