Although proceeding with the bank reconciliation is necessary to considerably reduce accounting errors, this operation requires high-performance, reliable and easy-to-use software to be efficient. Suppose you are an individual, SME or a large company looking for a benchmark service provider in this field. In that case, Diceus offers you innovative software development for banks and tailor-made solutions for optimal management of the accounts relating to your banking operations.
Why Do A Bank Reconciliation?
During banking operations, it often happens that the accounting records of the bank account are not proportional to the accounting entries. These discrepancies can be caused by errors or omissions when entering amounts (bank charges, agios, etc.), withdrawals made by the bank and of which the individual or the company was not aware, a double posting of a check or of an unrecorded transaction, checks not debited, etc.
Considering the inconvenience that these incidents can cause on the accounting monitoring of cash flow (customer reminders, payment of receivables, estimated budget, etc.), it is therefore imperative to carry out a bank reconciliation. This is a check carried out by the accountant aimed at:
- identify any oversights and errors (missing invoices, uncashed bills, etc.),
- to evaluate the differences in balances between the bank account and the accounts or to ensure their agreement.
It also makes it possible to identify the discrepancies between the dates of receipts and disbursements, update the accounting entries, and see the treasury’s actual state. When performing a bank reconciliation, each bank statement line and corresponding bank account records should be checked thoroughly to ensure the amounts are correct and equal. If discrepancies or differences are identified, an adjustment of the accounting entries must be made.
Today, the appearance of new, much more efficient tools like the bank reconciliation software has dramatically facilitated various tasks in this field.
When TO DO A BANK RECONCILIATION
For businesses and individuals alike, using a bank account has become essential, especially for professional needs. However, a client’s accounts rarely match their bank’s bank statements. The most common case concerns the time taken to consult the information. Indeed, the bank records the transfer of a customer or records bank charges on a given date which will only be visible to the customer upon reading his bank statement. Therefore, to ensure that no errors were made during this lag period, proceeding with the bank reconciliation using sophisticated software is a necessity.
Moreover, even if this process is not compulsory, it proves to be necessary mainly if banking transactions are carried out frequently. For companies, in particular, it is strongly recommended to do a regular bank reconciliation which allows their accounting operations to be monitored promptly.
Choosing A Bank Reconciliation Software: The Reasons
Back in the days of manual processing, the bank reconciliation process was long and tedious. In addition, the risks of error were exceptionally high. Fortunately, with current technological advances, it is now possible to access tools that facilitate the grouping of all the accounting entries associated with bank accounts and their recording. Using bank reconciliation software also saves a lot of time. Thus, the customer can focus on more critical tasks to increase his productivity. Once the process is automated and computerized, careless mistakes will be reduced or eliminated, leaving no room for errors, omissions, etc.
The use of bank reconciliation software thus has many advantages. By calling on a specialized supplier, you will benefit from products and services that meet your expectations.
Online Bank Reconciliation Tools
More and more traders, managers of VSEs and SMEs, and creators are using software to do their bank reconciliation.
There is, in fact, no longer any need to have accounting software or do your own accounting entry to have a precise idea of the cash flow of your business.
Inexpensive and straightforward solutions are offered in Saas mode, making it easy to do your bank reconciliation.
Most of the time, the solutions proposed are to relieve and facilitate the administrative work of the manager or his team. The use of a bank reconciliation tool gives us 3 advantages that seem essential to us:
- It saves substantial time. The time saving provided by a bank reconciliation tool is significant. Many entrepreneurs (traders, managers, etc.) check their bank statements or do their bank reconciliation in Excel. They would prefer to use this time to deal with other important topics or to relax by, for example, enjoying their evening.
- It gives a clear, precise and up-to-date view of the available cash. Very often, managers judge their cash level by adding the amount of cash in their bank accounts. However, this amount is not precise because it does not take into account the date offsets. The bank reconciliation makes it possible to calculate the theoretical bank balance, which considers all current financial flows.
- It facilitates and lightens the work of the accountant. The time spent by accountants to perform the bank reconciliation is necessarily re-invoiced in fees. Offering them a bank reconciliation report allows payments to be negotiated down.
Using a bank reconciliation module facilitates administrative work. It offers additional monitoring tools that enable their mission and save them precious time. You should go here to know more about bank software https://diceus.com/industry/banking/robotic-process-automation/