Bank reconciliation is an important monthly task for any accounts department. It compares your general ledger against your bank statement to check for any irregularities or overcharges and provides businesses a good financial oversight from month to month.
An important function of the bank reconciliation statement is to look for any missing money, therefore it is essential that the duties of issuing payments and reconciliation are separated. Bank reconciliation statements should be audited in-house at least once a month and by an external auditor at least once a year.
If you are looking to audit in-house, then here is a simple 7-step guide to auditing your bank reconciliation statement:
As you can see from this guide, while bank statement reconciliation is essential to maintain good accounts it is also a fairly laborious task. As a small business, it may be a rather boring but still quite a quick task. However, as your business grows, the volume of transactions will increase dramatically. What may only take an hour or so to start with could end up taking you a few days and is liable to be riddled with errors.
The alternative to the tedious 7 step process is to automate the reconciliation process with purpose build software and go from what could take days into a task lasting mere hours.
Adra Match provides automatic account reconciliation software to small, medium or large enterprises. The advanced software does most of the work for you and gives you overview over open items through detailed reports. Discover more benefits of automatic account reconciliation here.
We offer a cloud-based model for large and small businesses, as well as locally installed options for corporate organisations with policies of having software installed on local servers. Book a demo or get in touch to find out more.