jamesluttrell
Do³±czy³: 11 Wrz 2019
Posty: 74
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 Wys³any: Wto Kwi 13, 2021 10:58 am Temat postu: What is a Bank Reconciliation? - A Comprehensive Guide |
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While managing your finances have you ever wondered What is bank reconciliation? Here is the answer. Bank reconciliation can be defined as the process in which the accounting records of a business are matched with the bank statement. With this comparison, business owners try to figure out if there is any difference in the ending balances mentioned on the cashbook and bank statement. There can be instances in which you compare the cash book and bank statement and the balances do not match.
In such cases, it is very important to identify the reason for these discrepancies. The most common reasons are:
1.) Deposits in transit
2.) Outstanding checks
3.) Bank service fees
4.) Interest income
5.) Not sufficient funds (NSF) checks
Being a business owner if you want to make sure that your cash records are always correct then you should perform bank reconciliation on a regular basis. Along with this, it will also help you to protect your business from any type of fraudulent transactions and resolve any other issues. To explain the reason for any differences found in the ending balances, a bank reconciliation statement is used.
The frequency can vary from one business to another. If you have a larger number of transactions taking place then you will have to do it more often. Otherwise, doing reconciliation at the end of every month is fine in most if the caes.
If you want to know more about What is a bank reconciliation then contact QASolved.
Reference Source: https://www.hackerrank.com/challenges/cpp-hello-world/forum/comments/956612 |
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