Book Keeping Services
Overview
Bank reconciliation is the process of comparing a company’s internal financial records with the bank statement to ensure that all transactions are recorded accurately and discrepancies are identified and resolved. It is an essential accounting activity to maintain the integrity of financial records.
Purpose of Book Keeping Services
To ensure accuracy between bank records and company books
- To detect errors or unauthorized transactions
- To prevent fraud and maintain financial control
- To identify unrecorded transactions
- To support timely accurate financial reporting
Key Steps in Book Keeping Services
Obtain Bank Statement
Download the bank statement for the relevant period.
Ensure it covers the same period as the company’s cash records.
Compare Opening Balances
Check that the opening balance in the bank statement matches the book balance.
Match Deposits and Withdrawals
Compare all deposits in the bank statement with cash receipts recorded in the books.
Identify Outstanding Items
Match all withdrawals, including cheques and transfers, with the company’s cash payments.
- List outstanding cheques and deposits that have not cleared the bank yet.
- Record any bank charges, interest income, or returned items that are not in the company books.
- Record any missing entries such as bank fees, direct debits, or interest income in the company ledger.
- After adjustments, ensure the adjusted book balance equals the adjusted bank statement balance.
Benefits Improved accuracy in financial statements
Use accounting software to automate reconciliation and flag unmatched transactions.
Maintain clear documentation for audit and compliance purposes.
Clients Feedback
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