Reconciliation of Accounts

With the growth in the size of companies, the work and complexities of the finance department ha ve increased. An essential element of the finance function is accounts reconciliation. The reconciliation of accounts is one of the critical elements for closing the books at the end of the accounting period. The reconciliation of fund s is the practice used by owners to ensure their books are accurate and cash flows smoothly within the organisation. In simpler terms, the reconciliation process compares two sets of records and confirm s they a gree . With the help of accounts reconciliation, businesses can catch errors and ensure accuracy.   The common errors caught through accounts reconciliation include entries in the wrong month, double entries, bank withdrawals not entered into software, etc. Early catching of such discrepancies protects businesse s against major frauds and improves cash flows. The reconciliation of accounts forms the foundation for the rest of the work and t...