What is account reconciliation?
At the Account reconciliation, also Account reconciliation called, is it about two data sets for compare, For example, invoices and liabilities to ensure accuracy. Zu For every incoming and outgoing payment, there must be a booking because there must be no gaps and discrepancies in the accounting system.
How do I do account reconciliation?
Be carried out Account reconciliations in various areas. In the creditors and Accounts receivable The vote will be made on current account books. The former concern invoices from deliveries from suppliers, the latter comprising Transactions with customers, i.e. receivables and refunds. They are recorded on secondary books. Without such secondary books, the amounts would be posted to liabilities and receivables accounts in an unstructured manner. A comparison of current account books therefore provides greater clarity.
For smaller companies, there may only be one business account before payments from customers and to suppliers are received. In order to see which receivables are still outstanding, the details of the account statements are compared with the data and payments made by your customers. You don't use PDFs or printouts for this, but electronic account statements in the form of CAMT files.
others reconciliations can also affect inventory management when delivery notes and inventories are compared. Or you compare whether the removed vat That is the same as that was calculated during transactions to check whether the tax was paid correctly.
When do I carry out account reconciliations?
At the latest by Financial statements Are the votes made, which makes more sense — also in the interests of customers and your liquidity — compare accounts at shorter intervals, for example on End of month. It is therefore checked whether there is one of the The accounting department also documents corresponding transactions in the bank account There is.
Why does that make sense?
The result of reconciliation Is it ideally that the The balance on the account matches that in the books. If there are discrepancies, they must be resolved. If payments are missing, they must be collected. Alternatively, payment reminders can be created. Mistakes are likely to occur with automatic processes through a ERP software do not occur. If some have crept in from one or more transactions, posting entries may have to be corrected or refunds created.
Instead of making account reconciliations with Excel spreadsheets or typing out account statements by hand, is it more useful to use software that reconciling automatically Does because that way no mistakes happen. To do this, Importing and Exporting CAMT Files. These are compatible with almost all banks. When a ERP software If accounting and inventory management takes over, separate lists are therefore not necessary at all.
