Monthly bank account reconciliation is a process that is conducted at the end of the month to ensure a better and flexible account handling throughout the whole month. To ensure the smooth and reliable functioning of the bank account all the transactions from the monthly statement from the banks is cross-checked with the transactions of the company’s financial. Accounting reconciliation is a way to keep the balances in synchronised form and ensures you the safety of your bank account.

Monthly bank account reconciliation benefits the business bank account of the customer in a number of ways as mentioned below:

At the end of the month, the bank statement balance of the customer is reconciled, with the book bank account balance in the client’s books of accounts, resulting to the tallying of the two balances, the results from both the ends should be same to ensure that no theft or fraud has taken place. Hence it helps the customer to be sure of balance. Hence the customer is ensured that no theft or fraud has been made with his account.

Bank Account Reconciliation Services help to avoid mistakes, for example, if the bank made any sort of entry mistake, banks will be able to correct these mistakes when you point them out after you complete your reconciliation.

When a company operates on very low cash reserves, there is a large time lag in cash flow from vendor to employees and payment transfer between clients and customers. Monthly bank account reconciliation service can help prevent the overdraft and manage bounced checks.

Reconciling bank statements on regular basis like monthly helps to access accurate financial data of your account and helps to calculate accurate annual tax return. If bank accounts are not reconciled on regular basis it can lead to inaccurate tax return.

Account reconciliation helps to remove accounting errors by catching errors during Reconciliation.

Monthly reconciliation also ensures more safety to your business bank as Account Reconciliation will reveal bank transactions that were initiated by unauthorized individuals who try to steal money from your account.

It also gives you a better knowledge of your bank account balance as with it you can spot transactions that are recorded by the institution but are not in your records like the bank fees. Hence it helps you to know your accurate bank balance by revealing cash transactions have been cleared with the bank and which of those are still outstanding. For instance, there might be a situation when you fill out a slip with many entries but by mistake leave one check. With month bank reconciliation you can detect this mistake and rectify it by asking the customer for payment.

Bank reconciliations confirm all the transactions you make, helping you avoid any loss. Along with error detection reconciliation also helps to pay bills on time. As it can help to keep the track of all transactions that are automatically deducted from your bank account and reconciling balances. So you can easily detect an overdraft or missing payment every month. It also helps to keep a track of transaction status and receivables tracking.

Most importantly Account Reconciliation at the end of every month is your testimony that you are running an honest and legitimate business and it can keep you from any legal trouble. Hence bank account reconciliation services benefit you in a number of ways by making the account safer and ensuring more transparency in transactions to customers.