Accounting firms in Dubai advise you to perform bank reconciliation at least once a month. Most businesses carry out bank reconciliation after the end of a month as banks usually send monthly statements at the end of the month, which can be used as a basis for reconciliation. However, businesses should reconcile their bank account every time they get a statement from the bank, whether that is weekly, daily or at the end of the month as businesses can nowadays easily access their bank statements through online banking facilities. If your organisation is struggling to do bank reconciliation properly, outsource it to companies providing accounting services in Dubai.
Why Should You Do Bank Reconciliation?
A bank reconciliation statement helps you to identify and explain the differences between the entries in your accounting system and the corresponding transactions outlined on your bank statement. Here are some compelling reasons why you should do bank reconciliations regularly:
1. You can identify errors such as double payments, missed payments, calculation errors etc.
2. Bank reconciliation helps track and add bank fees and penalties to the accounting books
3. Businesses can detect fraudulent transactions and theft
4. You can keep track of accounts payable and receivables of your business
5. Regularly doing reconciliation helps you identify subscriptions that were meant to cancel and bank and credit card fees you may not realize you are being charged
6. It will let you know your company’s exact cash flow position
7. Bank reconciliation helps businesses to identify possible delays in check clearances
