You will learn what it consists of and how having your reconciliation automated can help you.
In addition, you will learn what the most common mistakes are when trying to reconcile (and how to avoid them)
We often cry out “help!” when checking whether our bank balances match our accounting records. However, there is no need to panic. It is not just us. It is usually normal for our bank statement and our accounting or treasury to not match 100%. To prevent this from happening and to be able to fix it, there is a process called bank reconciliation .
In this blog post with updated content , we explain how bank reconciliation is the act of comparing the real balance of the bank statements for each of the company's accounts with the accounting movements of cash inflows and outflows of said accounts, while correcting any existing differences. It is the only way to achieve clear, reliable and transparent accounting.
This is not a mandatory process, but it is highly advisable for any company , regardless of its size. Its objective is not to match the bank balances that the company has registered freight forwarders brokers email lists with the statements of those accounts, but to clearly identify what has generated the difference so that it can be corrected later and our accounts are a faithful reflection of the reality of the company.
The importance of bank reconciliation
Whether it is done automatically or manually , bank reconciliation is inevitable. But not because of an accounting whim, but for reasons such as those listed below:
Helps determine differences between accounting and the reality of business treasury.
It allows you to assess whether there are temporary differences due to the financial movement itself or whether there are items pending accounting . For example, on many occasions, due to the time in which the items are recorded in the company and in the bank, the balances do not usually match. In addition, the application of the accrual criterion in company accounting , which differs from the cash criterion of current accounts, means that the balances can be very different.
Avoid errors and unnecessary charges . With the review we can see if an erroneous charge appears in the bank account, for example.
It is used for greater control of the company's performance . With bank reconciliation we can see a perfect overview to understand the evolution and status of income and expenses .
It makes it easier to give a real and transparent image .