Purpose of Bank Account Reconciliation

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The purpose of bank account reconciliation is to match up the the amounts on bank statement with the amounts in company's books.

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Purpose of Bank Account Reconciliation

  1. 1. PURPOSE OF BANK ACCOUNT RECONCILIATION A PRESENTATION BY COGNEESOL
  2. 2. Bank account reconciliation is the process that is carried out to match up transactions stated in your bank statement to that of your company financial records. It is a critical accounting task that you should carry out each month. WHAT IS BANK ACCOUNT RECONCILIATION?
  3. 3. Ensure Balance Accuracy It match up the transactions on both the side and confirms the accuracy of the balances shown in the company’s books with bank records. #1
  4. 4. Speedy Rectification of Discrepancies A bank reconciliation discover problems that may arise due to unusual transactions or accounting errors. It prevent more than duplicate and erroneous payment #2
  5. 5. Detect Missing Entries Consider reconciling accounts with heavy volume monthly or weekly basis as it gives indication to update the entries if they are not recorded in the books. #3
  6. 6. Identify Uncashe Checks Reconciling bank account helps to check undue delay in the collection and clearance of some cheques. #4
  7. 7. Internal Auditing . #5 When it comes for company annual audit, the auditors always analyse the company's bank reconciliation statement as part of their testing procedures.
  8. 8. Evaluate Business PerformanceAccount bank reconciliation is key control in producing accurate financial statements and help in reducing the risk of any financial fraud that take place. #6
  9. 9. KEY POINTS TO CONSIDER Bank account reconciliations should be complete - Make sure no account left behind. Account reconciliations should be accurate. It should be reviewed in a timely manner. Account reconciliation should follow accounting principles The account reconciliation process should be constantly reviewed and improved as it reflects the company's position.
  10. 10. CONTACT US 30 Wall Street,8th Floor New York, 10005-2205 info@cogneesol.com +1646-688-2821
  11. 11. THANK YOU FOR WATCHING! For more information, head over to www.cogneesol.com

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