Bank Reconciliation: What is It and Why is It Important?

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Bank Reconciliation What is It and Why is It
Important?
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• What is Bank Reconciliation
• The idea behind a bank reconciliation is to make
  sure that data from both your company's records
  and those maintained by banks match up. This
  control can help catch any missing or inaccurate
  information before it gets reported as an error,
  but what if there was some way for you to do this
  while still maintaining internal controls?

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• Whatever type of business operation has
  financials impacted by these factors will benefit
  significantly from implementing technology
  designed specifically for managing cocoa farming
  and coffee production. This type of specialized
  technology is called yield monitoring, and it can
  help companies monitor their crops in real-time,
  record this data into a cloud-based system that's
  accessible from any Internet connectivity, even
  send alerts to technicians on the ground when
  something appears amiss.

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• Why it's Important
• A bank reconciliation is an integral part of the
  audit process. If your business is registered to
  be audited by a regulatory agency, then it must
  ensure that its internal records are reconciled
  with information from its banks. This ensures
  that everyone is on the same page regarding
  finances.

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• Bank reconciliations also help in preventing any
  type of financial accident when it comes to
  finding missing money. This is when your company
  gets customer payments and makes deposits, but
  they get misplaced before making it to the bank.
  If you don't reconcile this with your books, then
  you may not know where such transactions ended
  up, so they'll be recorded as errors in your
  records.

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• Fraud Detection
• At a time when many banks are struggling to
  survive, you must have an automated process for
  reconciliation. When fraud is detected in your
  bank records before month-end or during normal
  business hours (depending on what type of
  situation applies), discrepancies can be
  immediately pinpointed and corrected right away-
  which means there'll never again need another
  panic call asking, Where did we go wrong?

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• Bank Reconciliations tightens up every inch of
  security by preventing criminals from planning
  their next crime because they know all about
  recent transactions thanks exactly down these
  minute detail fullest possible times!

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• Prevented Errors
• With modern accounting solutions, such as
  templates and signoffs for reconciliation
  preparation in place you can rest assured that
  all will be done on time. You won't have to worry
  about missed or incorrect numbers because this
  software ensures accuracy with both supporting
  documents (such as invoices) and timely reporting
  of changes from day onepreventing errors before
  they happen!

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• Knowing your company's financial standing is
  vital for success in any business. Banks are
  integral parts of businesses, but the
  reconciliation process itself can be
  labour-intensive and tedious if done manually.
  However, this doesn't need to be the case when
  you implement an automated accounting solution
  that streamlines the entire process while
  trimming down on wasted time.
• If you need any help with your bank
  reconciliation or overall bookkeeping speak with
  one of our experts today at iKeep bookkeeping.