Bank Reconciliation Statement cutting your business costs
If a discrepancy arises from only one source, then it would be easy deal with. But sometimes there are several discrepancies, from them some are on debit side and some are of on credit side of the account which creates confusions. To remove this confusion and analyze the discrepancies, a bank reconciliation statement becomes very useful.
What you need to prepare Bank Reconciliation Statement? • the cash book • the bank statement for the period (weekly, monthly, quarterly)
There are some methods to reconcile the bank statement: 1) Reconcile cash book to bank statement- Starting with the closing cash book balance and check step by step the bank balance and solve the discrepancies. 2) The opposite process – Reconcile the bank statement to the cash book
To prepare a Bank Reconciliation Statement • Compare the transactions that appear on both cash book and bank statement • Update cashbook from details of transactions shows on bank statement • Balance the bank columns of the cash book to revise the balance
Complete the Bank Reconciliation Statement • Enter correct date of the statement • Enter the balance as per the cash book • Enter sub-totals on reconciliation statement • Calculate balance as per bank statement
Thus, bank reconciliation statement helps businesses to reduce the amount of unutilized cash in suspense accounts. A bank reconciliation done regularly can reduce the number of errors in an accounts system and make it easier to find missing purchases and sales invoices.
It is good business practice to prepare a bank reconciliation statement each time a bank statement is received. The reconciliation statement should be prepared as early as possible to solve the queries- either with the bank statement or in the firm’s cash book.
bookkeepingindia@gmail.cGenerally bank reconciliation between the cash book and the bank statement final balance simply means an explanation of the differences. For more details to make the bank reconciliation, please visit us at www.bookkeepingservicesindia.com.
Related Themes:
American Banking News - Asia Banker - Banking Articles
In a perfect world public and large private companies could experience rapid growth by simply treating their client base right and taking and gradually making more transactions to increase revenues to subsidize the additional costs of more locations, employees etc. This is fine if you are only trying to build a company worth a few million and then fold up when you are ready to retire. But if you are looking to build a legacy company that you can hand down to generations, create jobs, expand globally and constantly have a steady stream of purchase and merger offers as a safety net, you need to grow through acquisition and the best way to raise the capital for this process is to go public.
Small business banking - How an Effective Banking Solution Will Help Your Small Business
Our aim is to support various small business or professional business to develop their initial effort and it will make a better accounting. When it is possible, it's make it stronger position for rapid competition.
LGN, Make Money, how to make money, work from home, make money, home business
Goal Setting #3
Scope and Growth of Banking Jobs in India
India has emerged as one of the fastest growing economies of the world in just few years. The management of global economic slowdown by Indian economy better than other nations stands testimony to this fact. In coming times, India would be seen as one of the prime drivers of the world economy.
Internet Banking - Banking With A Click
In the past, people often rush to the bank for last minute deposits or withdrawals resulting in long lines at the teller's booth This was very inconvenient for most of us
Banking RSS Feed - Banking Headlines - Banking Sector Newss
If you are in need of investor relations solutions and have been surfing the web for an IR firm approach with absolute caution as pump and dump vampires lurk around every corner and crevice of cyberspace. They will suck the life out of your new or struggling public company so fast your head will spin.
Investment Banking Advisory - Investment Banking Articles
I have been involved with more mergers and acquisitions and IPOs than I can even count. I have been called many names when I am getting involved with corporate turnaround consulting but the most common of these terms are: arrogant, cocky and hardheaded. I take these names as a feather in the cap and a notch on the belt because the worst thing that can happen is that a company or board of directors hires a wimp or pushover. Having swagger when walking into a negotiation session or presentation makes all the difference. Refuse to lose and have the contacts to back up your moves.