Accounts Reconciliation Services 2018-05-03T06:51:01+00:00

Accounts Reconciliation Services

We explain what Account reconciliation consists of and how to proceed so that the movements and Account statements fit perfectly in the accounting of your SME and thus avoid the undesirable feeling that the data provided by the Account does not match reality.

One of the key and more delicate aspects in the accounting of an SME or SL is the reflection of all the movements of the Account accounts of the company, including those of online collections via Paypal, Stripe or similar. It is mandatory by law and essential to be able to keep accounts in accordance with commercial law and to balance the accounts of the company.

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Each Accounting movement must be justified by some event that occurred in the company conveniently documented and collected in the accounting: sales invoices, purchases, expenses and investments, documents that support the financing operations (loans, policies, leasing, capital increases, etc.) ) or the payment of payroll, taxes or social security by the company.

And not only SMEs, also some self-employed people have a strict control of their Accounting movements. It is usually self-employed that sell or buy on time, so it is important to follow up effectively to verify that all invoices have been charged to customers and / or all invoices have been paid to suppliers.

What is Account reconciliation? 

Account reconciliation is the comparison between the accounting notes made by the company for the registration of the movements of money from their Account accounts and the Account statements sent by the financial institution on those movements.

Thus, the company contrasts the information it receives from the Account with the information it has registered in its accounting notes, determining whether they coincide or not. In case of unbalance it is necessary to identify what is the cause of it, and try to solve it.

Nor should we rush; in many cases the mismatch is due to the habitual recess of a few days with which the Accounts register certain movements.

From all this, it follows that Account reconciliation plays an important role in the accounting of a business , as it is an essential element to show the true image of the company in terms of treasury.

But what are the causes of the mismatches?

Among the most common causes that do not match the values ​​of the accounting books and the Account statement we find:

Checks drawn by the company and that have not been cashed by the beneficiary of the check .

Charges for TPV in which several aggregate sales operations appear, which is then difficult to match with the sales invoices.

Payments that the Account has charged to the Account and that the company has not registered in its accounts (due to delay, error or omission).

Charges that the Account has credited to the company’s account and that it has not yet registered in accounting.