Bank Reconciliation: What is It and Why is It Important?
                     Bank Reconciliation: 
What is It and Why is 
It Important?
What is Bank Reconciliation
The idea behind a bank reconciliation is to make sure 
that data from both your company's records and those 
maintained by banks match up. This control can help 
catch any missing or inaccurate information before it 
gets reported as an error, but what if there was some 
way for you to do this while still maintaining internal 
controls?
Whatever type of business operation has financials 
impacted by these factors will benefit significantly from 
implementing technology designed specifically for 
managing cocoa farming and coffee production. This 
type of specialized technology is called yield 
monitoring, and it can help companies monitor their 
crops in real-time, record this data into a cloud-based 
system that's accessible from any Internet connectivity, 
even send alerts to technicians on the ground when 
something appears amiss.
Why it's Important
A bank reconciliation is an integral part of the audit 
process. If your business is registered to be audited by a 
regulatory agency, then it must ensure that its internal 
records are reconciled with information from its banks. 
This ensures that everyone is on the same page 
regarding finances.
Bank reconciliations also help in preventing any type of 
financial accident when it comes to finding missing 
money. This is when your company gets customer 
payments and makes deposits, but they get misplaced 
before making it to the bank. If you don't reconcile this 
with your books, then you may not know where such 
transactions ended up, so they'll be recorded as errors 
in your records.
Fraud Detection
At a time when many banks are struggling to survive, 
you must have an automated process for reconciliation. 
When fraud is detected in your bank records before 
month-end or during normal business hours 
(depending on what type of situation applies), 
discrepancies can be immediately pinpointed and 
corrected right away- which means there'll never again 
need another panic call asking, “Where did we go 
wrong?” 
Bank Reconciliations tightens up every inch of security 
by preventing criminals from planning their next crime 
because they know all about recent transactions thanks 
exactly down these minute detail fullest possible times!
Prevented Errors
With modern accounting solutions, such as templates 
and signoffs for reconciliation preparation in place you 
can rest assured that all will be done on time. You won't 
have to worry about missed or incorrect numbers 
because this software ensures accuracy with both 
supporting documents (such as invoices) and timely 
reporting of changes from day one—preventing errors 
before they happen!
Knowing your company's financial standing is vital for 
success in any business. Banks are integral parts of 
businesses, but the reconciliation process itself can be 
labour-intensive and tedious if done manually. 
However, this doesn't need to be the case when you 
implement an automated accounting solution that 
streamlines the entire process while trimming down on 
wasted time.
If you need any help with your bank reconciliation or 
overall bookkeeping speak with one of our experts 
today at iKeep bookkeeping.