Bank reconciliation is an important task for any accounts department. It compares your general ledger against your bank statement to check for any irregularities, such as overcharges, and provides helpful financial oversight from month to month.
Your bank reconciliation statement helps bring any missing money to the surface, so it is essential that payment issuance and reconciliation are separated. Bank reconciliation statements should be audited in-house at least once a month and at least once a year by an external auditor.
If you are looking to audit in-house, here is a simple 7-step guide to auditing your bank reconciliation statement:
Bank reconciliation is essential to keep up with your accounts, but a laborious and tedious task, even for a small business. As your business grows, the volume of transactions will increase dramatically. What may only take an hour to start could end up taking a few days and is liable to be riddled with errors.
The alternative to this lengthy 7-step process is to automate the reconciliation process with specialized software and transform a task that typically would take you days to complete into one that would only take a few hours.
Adra Accounts provides automatic account reconciliation software to small and medium-sized enterprises. The software’s advanced robotics can complete most of the work for you and provides an overview through detailed reports. Discover more benefits of automatic account reconciliation here.
Written by: Ashton Mathai