Why do You Need an Expert to Reconcile the Bank Statements

Bank reconciliation is a document that monitors the internal financial records of the company with the bank’s financial statement. This ensures that internal company transactions and the bank’s statement have no difference and are consistent. Furthermore, it also helps to identify any frauds or financial exploitation in the firm.

The large quantity and simultaneous checking of data make it a very challenging and complex task. The company’s statement and the bank’s statement are mostly never the same because of various reasons.

Reasons for Difference in Accounts:

Hire Expert for Bank Reconciliation Statements

Time Difference 

One of them is the time difference. Time difference occurs when the transaction is not recorded by any one of the entities involved at the same time, so this leads to a difference in the bank’ and company’s accounts.

Service Charges by Banks 

Another reason that causes the difference in statements is the charging of service fees by the banks. These are the fees charged by the banks for the transactions done by the company. These charges are recorded automatically in the bank’s account but not in the company’s internal record which causes the difference.

Human Error

Human error can also be another reason for the difference between both the statements when an employee in either of the organization mistakenly adds or forgets about the transaction that took place.

Outstanding Cheques

Outstanding cheques, the cheques issued by the company but payment is not processed also contributes to the difference in the balances of both organizations.

Different Currencies 

Moreover, the difference in currency also causes a mismatch in the statements. The immediate difference in accounts of bank and company internal accounts occur when the company receives the payment in another currency and but the account is opened in one currency.

Direct Payment to the Bank 

When a bank receives the direct payment on behalf of the company and the company is unaware of it. So the bank’s account is updated but the company’s internal account isn’t updated which causes a difference in both of the accounts.

Reconciliation statement

Payment by the banks

Payment directly by the bank also causes the difference among both accounts when the bank debit the amount directly from the company’s account and the company only gets to know about it when it receives its financial statement from the bank. 

NSF Cheques

NSF cheques, it’s when the issuer of the cheque has less amount in the account to pay the balance. So the cheque is returned as an NSF cheque to the depositor.

All of these reasons become a challenge and contribute to the difference between internal accounts of the company and the bank’s account. Bank reconciliation statements require a lot of attention, effort and hard work so that the task is done correctly and results are certain.

Keeping in mind all the challenges faced by the firms and with fast-changing business environments we have come up with the solution which will help every organization as well as save time.

Excelide is the Solution

Fix Bank Reconciliation Statements

Excelide is an answer to all the problems and challenges as:

  • It helps to effectively compare the bank records and the company’s records.
  • It gives a template that is user friendly and ensures real-time updates. To cater for the needs of each business its template can be used to observe and compare its transactions.
  • Its template makes it easy to identify any error and correct it timely so that in the end there is no difference in the bank’s record and the company’s financial record.

Excelide will not only help to generate reliable results, it will also save up important time. It will help bring efficiency to the company by keeping a track of its transactions. Also help to identify any fraudulent transaction, and ensure the smooth running of the business.

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