Bank Reconciliation

Bank Reconciliation Services (BR)

A well-kept record of all transactions is vital to keep a tab on cash flow, profits, expenditures, and overall financial statement. Heka Support Services provides reliable and cost-effective bank reconciliation services to help organizations achieve this. Our proficiency in bank reconciliation journal entries and financial reporting enables fast and precise matching of accounts and internal records. The flawless bank reconciliation process we follow assures accurate and on-time clearing and balance information on specific accounting period basis – daily, weekly, monthly, or quarterly – helping in clearing outstanding, filing taxes timely, and right picture of sales activity.

Cash is the lifeblood of every business unit and it requires to be updated regularly through account reconciliations. Though it is a critical job, accounting bank reconciliationis essential for a business unit to identify the actual difference of cash balance it has by matching its own account books with actual statement from financial institutions and banks. It is necessary that company bank balance and book balance should match to avoid any financial irregularities or loss of profit. However, difference between the bank accounts and in-house records are likely to occur because of the following reasons.

1. Cheque issued but not presented for payment.
2. Cheque deposited but not cleared
3. Charges debited by bank but not recorded by in-house accounting process
4. Interest credited by bank but not recorded by the accounting department
5. Error made either by bank or the company’s accounting department

The mismatch, thus created, misleads on profit calculation, share value fixation, cash flow tracking, balance sheet creation and impacts the financial position of the organization in the long run. The tedious process of accounting bank reconciliation, a measure against such pitfalls, demands employing staff well experienced in finance and accounting domain. This adds to the overall operational cost and calls for experience in bank reconciliation journal entries. With Heka Support Services taking over your bank reconciliation process, you are assured of cost-effective and reliable account reconciliations.

Accounting Bank Reconciliation Statement

A bank reconciliation statement is a record that contains the detail of differences between the bank balance and in-house balance sheet prepared by company’s own finance department. The bank reconciliation statement is prepared at the end of every month or the specified accounting period by the accountants. The Performa of Bank Account Reconciliation statement is shown as follows.

The above example of bank account reconciliation statement explains briefly about how an accountant can easily find the difference on actual bank balance and company book balance. The balance of the last row of the above statement must be matched with actual bank balance. If there is any difference then the accountant must repeat the bank reconciliation process until the balance is settled.

Steps Followed In SAP for Bank Reconciliation

1. Upload Bank Line
   Everyday bank sends the transaction details in a specific format to the treasury. It is the responsibility of a treasury person to upload each line into SAP. The lines uploaded by the treasury are directly transferred to a main account (i.e. 512…..) mentioning positive and negative amount of cash. The main account is also divided into two parts, incoming payment (511…10) and outgoing payment (511…20). The number assigned for main bank account and incoming and outgoing payments are different for each bank.
2. Bank entry in Book
   Accountants maintain books to keep record of various types of payments and deposits in SAP on daily basis. All the payments are recorded in account books for outgoing payments and deposits are recorded using account books for incoming payment. This enables fast and swift bank reconciliation services.
3. Reconciliation
   As all the transactions are available in SAP, it is the time for accountant to reconcile each line from actual bank statement with the corresponding information on in-house account books. For each bank, the accountant has to perform the bank reconciliation process separately twice, first for incoming and then for outgoing payments. When an accountant matches any transaction it automatically disappears from the list of available line in SAP assuring proper account reconciliations.
4. Bank Reconciliation statement
   Bank account reconciliation process ends with processing and generation of statement. This statement is a detailed summary of all the bank transactions which do not match with internal records during the reconciliation. With the help of bank reconciliation statement one can identify the cause of differences between the cash and bank balance. Therefore, it is one of the most important accounting processes that every company undertakes to ascertain the real cash balances at the end of the month.

With the help of bank reconciliation statement one can identify the cause of differences between the cash and bank balance. Therefore, it is one of the most important processes of accounting for every company to ascertain the real cash balances at the end of the month.

How can we help?

Today’s business complexity and tough market competition demand full focus on core commercial activities and greater resource optimization for improved sustainability. It means you may not have the requisite time or resources to allot solely to ensuring accuracy of your account reconciliations, while running your business. With the help of competent finance and accounting analysts at Haka Support Services, you can rest easy knowing that experienced people making sure that all your information are accurate and processed as per the requirements.

With bank reconciliation services led by specialists experienced in this field, we can assist you with partial, full, and deposit account reconciliations. Our bank reconciliation process analyzes all client bank records, examines internal records, find outs bank reconciliation journal entries, and prepares reconciliation statement of credit billings with internal records.