Wednesday, February 22, 2012

How to Audit Your Bank Reconciliation Statement


Financial institution getting back together is an essential monthly procedure for any records division. It analyzes your common journal against your bank declaration to examine for any problems or overcharges and provides businesses a excellent financial management from 1 month to 1 month.

An essential function of the lender getting back together declaration is to look for any losing money, therefore it is essential that the responsibilities of providing payments and getting back together are divided. Reconciliation claims should be audited in-house at least once monthly and by an exterior auditor at least once a year.

If you are looking to review in-house, then here is a simple 7-step information to auditing your bank getting back together statement:

1) Collect your bank declaration, common journal and bank getting back together records for the 1 month you wish to review.

2) Look into the ultimate numbers on your getting back together papers against your bank declaration for that consideration. The amounts should go with.

3) Look into the ultimate numbers on your bank getting back together papers against your common journal somme to ensure they both go with.

4) Find the distinction in value between your bank declaration finishing balance and your common journal total. The distinction should be effectively shown in your bank declaration.

5) Match off dealings from your bank declaration and common journal consideration. Each deal in one papers should have a corresponding deal in the other. It is always best to level these off as you go to avoid misunderstandings.

6) Emphasize any non-matching dealings between your common journal and bank declaration. These products are 'reconciling' products and should be included in your bank getting back together papers with full reasons for the difference. These products are usually the result of funds that have not yet removed or cheques that are patiently waiting to be removed.

7) Double-check that the distinction between your bank declaration and common journal is effectively included in your bank getting back together papers.

As you can see from this information, while bank declaration getting back together is essential to maintain excellent records it is also a fairly time consuming procedure. As a company, it may be a rather tedious but still quite a quick procedure. However, as your company develops, the number of dealings will increase considerably. What may only take an hour or so to start with could end up taking you a few times and is responsible to be full of mistakes.

The alternative to the tedious 7 phase procedure is to improve the getting back together procedure with purpose build application and go from what could take times into a procedure durable simple hours.

There are companies that can provide computerized consideration getting back together application to little, method or huge businesses. The innovative application does most of the perform for you and gives you summary over start products through specific reviews.

Adra Match provides computerized bank getting back together application to little, method or huge businesses. The innovative computerized getting back together application does most of the perform for you and gives you summary over start products through specific reviews.



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