What is Accounting?
The accounting process is one of recording, classifying, and summarizing transactions to provide information that is useful in making business decisions. In large part this information is provided through financial statements: a balance sheet, an income statement, and a statement of cash flows.It should be emphasized at this point that accounting is an intrinsic part of any organization since the information provided by it allows its managers and other users of the information to keep track of its financial performance and make appropriate and timely decisions about its future.
Accounts Reconciliation
Accounts reconciliation refers to the process of comparing two records to agree. It is an accounting function that ensures the records of a firm are accurate.
Accounts Reconciliation Services
Accounts reconciliation services refer to the services offered by firms in providing audit assistance for reconciling financial records. These services are usually provided by accounting firms or other specialized companies, especially for organizations which may not have the means and competence to carry out the reconciliation process themselves. Accounts reconciliation services are characteristically a line item comparison of an organization’s internal records against external records, such as bank statements, in which discrepancies are identified and corrected. This would ensure the accuracy of financial information provided and also enable the organization to be in good books in terms of the financial aspect.
Accounts Reconciliation Statement
The reconciliation statement is the document that summarizes the results of the reconciliation. This normally includes a listing of all discrepancies between two sets of records identified during the process. It also shows how such discrepancies have been resolved. It is an important tool necessary for an organization to maintain the accuracy of its financial records. In many cases, auditors, among other stakeholders, can use it to verify the organization’s financial health.
Bank Reconciliation
Bank reconciliation is the process of comparing an organization’s internally held record of its bank account with the bank’s records on the organization. This is done to ensure that these two records agree and find the discrepancies in them. For instance, an organization may find that the check it issued has not arrived in the bank’s books or that a deposit made by it was credited to some other account. In such cases, the organization can ensure the accuracy and updation of its financial information by reconciling the same with its bank statement.
Accounts Reconciliation services provided by BHMJ
We at BHMJ Associates provide account reconciliation services for the fact that it is one of the major factors in ensuring the integrity of financial records. Some of the key services rendered by us are as follows:
- Bank Reconciliation: Reconciling the bank statements against internal company records to identify misalignments and resolve them to portray accurate bank-recorded transactions in records.
- Credit Card Reconciliation: Performing credit card transaction reconciliations against the company’s records to eliminate the outstanding differences for valid financial reporting.
- Vendor Reconciliation: The accounts payable shall be matched against the vendor statements to ensure the same level of outstanding invoices and payments reflected in the vendor statements.
- Customer Reconciliation: Accounts receivable are matched against customer statements to verify that outstanding payments are tracked correctly.
- General Ledger Reconciliation: General ledger accounts will be matched and reconciled at various levels to ensure consistency and accuracy at the same level as that of financial reporting.
- Stock Reconciliation: This is the process of comparing the actual count of inventory to the quantity in the books and making the necessary entries for discrepancies.
- These reconciliation services help the business concerned maintain appropriate accounting records that assist in noticing errors or discrepancies and maintaining the accounting standards. All this adds to the general financial health and integrity of the organization.
BHMJ provides accounts reconciliation services. It ensures accounts are reconciled on a periodical basis, either daily, weekly, or monthly. The following accounts always require reconciliation