Account reconciliation is the process of comparing the company’s financial records internally or externally.
- The company need to reconcile its financial records internally by comparing, for instance, stock records with the physical stock at its warehouse or store, checking its physical cash balance with what the records say, verifying whether expenses incurred or paid in accordance with approved policies and procedures.
- Externally, the company needs to compare its bank accounts with the bank statements, its creditors and debtors’ records with the creditors and debtors periodically.
Undertaking reconciliation helps the company to verify and confirm that the account balance is accurate and reflects the transactions transpiring over the period. Hence, the resultant account balance is correct and ensures the accuracy in financial records kept by the company.
Through the reconciliation exercise, the company is able to identify errors and irregularities with regard to its financial records and get them corrected or rectified to ensure the accuracy of the company’s books of account.
What We Offer
1. Bank Reconciliation
- We compare the company’s bank accounts or cash book with the bank statements received from the banks. All deposits and withdrawals in the cash book are compared with the bank statements to ensure that the correct entries were made. All disparities between the two statements or accounts are then investigated by us the findings of the same are brought to the company’s management attention for the necessary actions.
2. Cash Reconciliation
- We compare the physical cash count with the cash balance with the company at a given point in time. Some cash payments might be made by the officer-in-charge of the cash with the approval of management. The company, in turn, will be losing a lot of funds if these frauds are not corrected. The liquidity of the company gets affects in the long run.
3. Stock Reconciliation
- The physical stock quantities might be different from what the company’s records indicated. The disparity is usually as a result of poor internal control over the stock items. In many cases, the stock items are stolen or sold to customers with passing through the company’s records. Not reconciling the stock records and putting in place measures to ensure the accuracy between the stock records and the physical stock quantities will result in the collapse of the company in the long run. We undertake physical stock counts and reconciliation to help the company have control over its stock items.
4. Creditors Reconciliation
- The company’s records or statements might be totally different from what the creditors’ statements state. These disparities go a long way to affect the business relationship between the company and its creditors’ if not resolved as soon as detected. We help companies to reconcile the creditors’ statements with theirs to ensure a healthy relationship between the company and the creditors.
5. Debtors Reconciliation
- Likewise, the company’s records might be totally different from what the debtors’ statements indicate. These disparities go a long way to affect the business relationship between the company and its debtors if not resolved as soon as identified. We help companies to reconcile the debtors’ statements with theirs to ensure a healthy relationship between the company and its debtors’.