Bank Reconciliations

6 Simple Steps To An Accurate Bank Reconciliation

Business Records

Getting your records together is the first step in your bank reconciliation. You will want your company's accounting records for that period .

Opening Balance

Check to see if the beginning balance on your bank statement and your accounting records match. You might believe you can skip this step.

Review Transactions

It's now possible to verify your opening balance, so you may begin going over your transactions. Take your time and compare each line.

Bank Statement

You should add any goods to your business's account that you discover are missing from the bank statement. These things could be bank errors.

Cash Account

Your company's cash account probably needs to be adjusted. You may need to make adjustments for a number of things, including errors.


Closing Balance

Once all of the transactions have been matched, compare your account balance to the bank statement's final closing balance. The two ought to coincide.

Streamline Bank Reconciliation with HR BD

No financial difficulties fall through the cracks. Comparing your bank statement and company account is a rather easy exercise. However, despite its simplicity, it can be time-consuming and boring.

Fortunately, there is an alternative to manual bank reconciliation. HR BD’s bank feeds tool can automatically bring in your transactions and provide a bank auditing & assurance statement.

This enables you to rapidly compare things. After that, all you have to do is provide your approval. In the end, this means you have more time to concentrate on what really matters: giving your clients an incredible experience.

Bank Reconciliation with HR

How Does the Process of Bank Reconciliation Work?

The process of bank reconciliation consists of several steps. Usually, these consist of: 

The first stage in performing a bank reconciliation is to look for any discrepancies or unknown transactions on the bank statement. This includes looking over all made deposits and other bank costs.

This step involves comparing the bank statement against your cash book and internal accounting data . Look for any hidden written checks, dates, or amounts that don’t add up on the bank statement.

After examining and contrasting your internal bank records with those on the bank statement, you will make any required revisions to your accounting records.

Our staff is able to integrate and standardize all of their reconciliations on HRBD, eliminating the need for disparate spreadsheets. He seeks reliable, consistent, and precise reconciliation procedures.

Why Bank Reconciliation Is Important?

Bank reconciliation is not only a wise habit but also necessary for a number of reasons.

Bank Reconciliation Important

Mistakes can happen on either end: bank errors, multiple entries, missed entries, etc. Your accounting records accurately reflect your financial status if you perform regular reconciliation.

Promptly identifying any abnormalities that may indicate fraud or unlawful transactions is made easier with a rapid reconciliation process. This is essential to start taking prompt corrective action.

You can obtain a precise picture of your available cash by doing a bank account reconciliation, which will assist you in making well-informed decisions on loan applications, investments, and bill payment.

Reconciliation is a must for many companies, particularly those that are publicly traded or operate in regulated industries. It’s mandated by regulations.  

Bank Reconciliations in Accounting Tailored to Your Demands as You Expand

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