The process of checking the integrity of data between bank records and a company’s financial records is known as bank reconciliation. It starts with verifying a cash account’s balances in an entity’s accounting records to the information on a bank statement. As a result, it is a required process that can become tedious and time-consuming at times.
Why should you outsource the bank reconciliation process?
- Do you find it difficult to reconcile your bank and credit card balances at the end of each month in Dubai, UAE?
- Is reconciling your bank and credit card statements getting more difficult, time-consuming, and complicated?
- Are you looking for a trustworthy and knowledgeable partner to manage your bank and credit card reconciliation? You’ve come to the right location if that’s the case.
This process consists of 4 steps as mentioned below.
- Equate the Deposits
Highly experienced experts have the talent to equate the deposits properly on time.
For example, the business records’ deposits should be matched with those in the bank statements, and the amounts should be compared thoroughly.
- Adjust the Bank Statements
You must keep an eye on your bank statements and balance the bank statements to the corrected balance. To cover up this process, you have to have a better understanding of the process and balance the statements on time.
- Adjust the Cash Account
Adjusting the cash accounts is not an easy task. You must adjust the cash balances by adding interests or deducting monthly charges and overdraft fees.
Accounting firms that have the necessary certifications have the knowledge and proper plan to help you adjust the cash accounts.
- Equate the Balances
The reconciliation process will have to be repeated if the adjusted balances and the adjusted amounts are unequal.
Therefore, it is wiser to communicate with an expert and equate these balances.
It is always better to outsource the bank reconciliation process to an expert’s hand so that you do not have to tackle all your business work and also manage these processes. Outsourcing will help you to focus on your main objectives rather than setting yourself in trouble trying to balance all the tasks at once.
Benefits of Outsourcing bank reconciliation process
- Ability to detect fraudulent activities
An organization’s distributed cheques can be matched with the amount reflected in bank statements using bank reconciliation outsourcing services.
Their continuous re-evaluation, which is based on suitable sheets and procedures, aids in the detection of fraudulent actions such as payments made to illegal businesses, payments given to illegitimate employees or vendors, and unrevised sanctioned check amounts and data.
- Ability to find errors
Bank employees can make accounting errors such as transferring the wrong amount, recording the wrong amount on a check, entering the wrong amount in the wrong bank account, entering a duplicate transaction, or omitting an entry from a company’s bank statement.
Outsourcing bank account reconciliation allows businesses to report inaccuracies to the bank, which then investigates the discrepancy and corrects the error.
- Ability to avoid overdrafts
Payments sent to employees and vendors, as well as payments received from customers, can take a long time to process.
This primarily impacts businesses with extremely minimal cash on hand.
Regularly outsourcing bank reconciliations can help businesses manage or defer payments, which can protect them from unpaid bills, company overdrafts, additional interest, and insufficient money.
Why should you choose KLOUDAC to outsource your bank reconciliation process?
KLOUDAC has a team of experts who are excellent at handling these processes. We are well experienced and can find quick and reliable solutions for our clients in no time. We have provided the best solutions over the past 15 years and KLOUDAC has proven experience in managing bank and credit card reconciliations which is why you should choose KLOUDAC.
KLOUDAC Accounting Firm Dubai, UAE
KLOUDAC is a recognized accounting firm in Dubai, UAE with 15 years of service experience. We have built connections with over 500 customers. It has also won the certification of Xero Payroll and certification of Xero advisor from the world’s leading online accounting software – XERO. Moreover, KLOUDAC is a golden champion partner of Xero. Accounting and Bookkeeping are more convenient for the SMEs via KLOUDAC since they provide their clients with a whole package of services such as Financial Consultancy, Business setup, Audit and assurance services, Taxation services, Recognized accounting software, and more.