BINJOY Auditors L.L.C

Bank Reconciliation

Bank Reconciliation Overview

Bank reconciliation involves aligning the cash account balances in a company's records with those shown in its bank statements. This crucial process identifies discrepancies and ensures accurate financial records. The bank statement reflects all transactions affecting the company's bank account over a specified period, typically a month.

Importance of Regular Bank Reconciliations

  • Accuracy Verification: Ensures cash accuracy and prevents issues like unexpected low balances that can lead to bounced checks or overdraft fees.
  • Fraud Detection: Helps uncover potential fraud, prompting improvements in cash management controls.
  • Efficiency Improvement: Questioning the necessity of accounts with minimal activity can streamline cash management and enhance investment monitoring.
Key Terminology

Our services guarantee :

  • Deposit in Transit: Cash or checks received by a company but not yet recorded by its bank. This delay often happens if the deposit arrives late in the day or is mailed, causing it to miss the bank's month-end cutoff.
  • Outstanding Check: A payment recorded by the issuing company but not yet deducted from its bank account. It hasn't cleared the bank by month-end, requiring reconciliation adjustments.
  • NSF Check: A check refused by the issuing bank due to insufficient funds. Banks may charge fees for processing such checks, and the issuer incurs fees for issuing them.
Benfits Of Bank Reconciliation In UAE 

Our services guarantee :

  • Precise Cash Management: Ensures accurate management of your company’s cash records.
  • Error-Free Financial Statements: Provides fraud-resistant and error-free financial records.
  • Efficient Transaction Tracking: Maintains organized documentation for tracking transactions.
  • Improved Accounting Systems: Identifies and resolves inefficiencies in your accounting system.
 BINJOY 's Expertise

At BINJOY, we have a skilled team of professionals adept at analyzing and evaluating financial transactions and accounting records to uncover discrepancies, ensuring improved financial prospects for our clients. With years of successful operation, we have established ourselves as leaders in delivering exceptional Bank Reconciliation Procedure services in the UAE.

Seeking reliable Bank Reconciliation Services in the UAE? Our dedicated experts at BINJOY are ready to assist you. Contact us today for personalized assistance and expert guidance.

Bank Reconciliation Procedure

Assuming the use of accounting software, this software streamlines the reconciliation process, simplifying your tasks:

  • Access the Bank Reconciliation Software Module: Find a detailed list of uncleared checks and deposits.
  • Mark Off Cleared Checks: Mark all checks in the reconciliation module that the bank statement confirms as cleared.
  • Mark Off Cleared Deposits: Mark all deposits in the reconciliation module that the bank statement confirms as cleared.
  • Record Bank Charges: Enter any bank charges from the statement that haven't been accounted for in the company's records as expenses.
  • Enter Ending Balance: Input the ending balance from the bank statement.
Bank Reconciliation Procedure
  • If the ending balance matches the book balance, finalize the reconciliation by posting all adjustments and closing the module.
  • If discrepancies persist, continue reviewing for:
    • Varied amounts for checks between bank and company records.
    • Varied amounts for deposits between bank and company records.
    • Checks in bank records not in company records.
    • Deposits in bank records not in company records.
    • Inbound wire transfers from which a lifting fee was deducted.

At BINJOY, our experienced team ensures a meticulous reconciliation process, enhancing the accuracy and reliability of your financial records. Contact us today to streamline your bank reconciliation procedures and achieve greater financial clarity.