Every day, companies carry out various financial transactions (payments, transfers, receipts, investments, etc.). To ensure that these transactions are properly recorded, it is necessary to reconcile accounts: comparing the linkedin database and outflows and the transactions carried out by the company. The result of the bank reconciliation should be a clear and objective report, in which it is possible to identify the differences found between the bank statements and the company's internal balance.
Bank Reconciliation Step by Step
Identification of bank accounts : companies may have several, for different purposes, but they must all be reconciled;
Daily recording of all financial transactions : inflows and outflows must be meticulously recorded (payments to suppliers, bank loan payments, salary payments, taxes, customer receipts, etc.). A spreadsheet or certified software can be used to make the records;
Confirmation of bank balance : with all transactions duly entered, it is possible to check the bank and financial balance. All values and dates of movements must be compared and confirmed, and those that are duly correct must be marked;
Treatment and correction of discrepancies : irregular financial movements (bank statements and records that do not match) must be analyzed. Researching the origin and reason for the irregularity is important in order to proceed with the correction;
Bank reconciliation : the objective is to obtain the accounting balance based on the bank balance, justifying any possible difference (for example, checks issued but not yet cashed at the bank).
