Reconciliation of the bank, cash and credit card accounts
Reconciliation of the bank, cash and credit card accounts
Chart of accounts reconciliation helps ensure that balances are accurate and that all transactions are recorded.
Keeping track of your business bank account can be tricky when transactions start piling up. Our bookkeeping experts will match your bank feed with your financial records to ensure all your transactions are accounted for and reconciled accurately.
Key measures will ensure that you have clear insight into your cash, and a solid foundation to assist you with your cash flow forecasts. We offer weekly or monthly bank reconciliation via your bank connection to your bookkeeping software and monthly or quarterly ledger account checks, ensuring that all control accounts balance and investigate any discrepancies.
Types of reconciliation
There are several types of account reconciliation, including:
- Bank reconciliation: Compares bank records with a company’s internal records
- Supplier reconciliation: Compares accounts payable with supplier invoices
- Customer reconciliation: Compares accounts receivable with customer payments
- Intercompany reconciliation: Compares financial records between different divisions of a company
- Credit card reconciliation: Compares credit card charges with expenses.
How it’s done
- Gather financial records, such as bank statements, invoices, and receipts
- Run a trial balance to ensure all accounts are captured
- Compare the recorded transactions to the external statements
- Identify any discrepancies
- Investigate and resolve the differences
- Document the reconciliation process.
Why it’s important
- It helps ensure the accuracy of financial statements
- It provides a complete record of a company’s financial activity
- It helps identify theft early on.
Examples
- Comparing the cash account balance to the bank statement
- Reconciling accounts payable with supplier statements
- Comparing outstanding customer balances to the accounts receivable.
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