Bank Reconciliation Statement Understanding its Importance and Process

1. Bank Reconciliation Statement: Understanding its Importance and Process The bank reconciliation process involves a few steps that must be followed carefully without making any mistakes. Our bookkeepers are experts in preparing required documents, comparing balances and transactions, and making corrections. • Accessing Bank and Business Records The first step of bank account reconciliation is collecting bank and business records. We will prepare a bank statement for a specific time period we want to reconcile and the business’s accounting records for that time period. • Check the Starting Balance After completing the first step of accounting bank reconciliation, we verify the opening balance on your bank statement to check if it matches the opening balance on your own accounting records. We make sure it is accurate. • Review Transactions Basically, the purpose of bank reconciliation is to detect errors and make corrections. That’s why we review your transactions. We compare your business’s account to your bank statement. • Bank Statement Adjustment If there are items on your business books and they are not present on the bank statement, then our bookkeepers will help to add them. Bank reconciliation’s purpose is to maintain an accurate measure of all transactions. • Cash Account Adjustment Your business’s cash account may need some adjustment. Our bookkeepers can help manage that adjustment which may include bank fees and other charges. • Check the Closing Balance After going through and matching each transaction, we compare the final closing balance on the bank statement to your business books. For every business owner, it is important to understand account reconciliation’s meaning.

2. Frequently Asked Questions (FAQs) What is bank reconciliation in Australia? Bank account reconciliation is a method to double-check your bookkeeping. Our bookkeepers can help by comparing your business accounts to your bank statements. Both records should match each other. Is a bank reconciliation statement the same as a balance sheet? Basically, bank reconciliation accounting is the process of comparing your company’s balance sheet and bank account. What are the most common errors in bank reconciliation? One of the most common reasons behind bank account reconciliation errors is duplicate or missing transactions. You can also view the bank reconciliation report for more detailed information. What to look for when bank reconciliation doesn’t balance?It is important to check that all the reconciled transactions match your bank statement and have an accurate date.

3. Contact Us • For more information, you can contact us with the below details. Reliable Bookkeeping Services1/3 Westside AvenuePort Melbourne VIC 3207AustraliaContact:1300 049 534Mail: enquiry@reliablebookkeepingservices.com.au