Why & How Reconcile a Bank Statement ?
Generally people face the problem of ignorance of outstanding checks that leads to checking their account. For avoiding the issue bank reconciliation is the best solution. The user needs to go for monthly bank reconciliation process for their account. This reconciliation process help the user to track the cash flow and get a clear picture of the total cash available with the the user. It is an easy process but sometimes it becomes complicated when there are many transactions who are choosing the QuickBooks Enterprise accounting software. The steps included under QuickBooks Enterprise Bank Reconciliation process are as followed:
Bank Reconciliation Statement Meaning
- Thorough Research between Closing Balance of the Bank and Company Books: Comparing the books is always beneficial and should be done at regular intervals. QuickBooks Enterprise software simplifies the process this task by the process bank reconciliation, when the user shares the closing cash balance of the bank.
- Recording Bank Transactions to Book Balance: There are times all the debits and credits are alleged via bank account and is not recorded under the company books. Here the QuickBooks Enterprise software process the transactions by extra positive transactions and deducting the negative transaction from the cash balance of company books.
- Recording Book Transactions to Bank Balance:The outstanding amount that is not yet cashed are recorded and displayed under bank statement along with deposits. The QuickBooks Enterprise software has to needs to add the positive transactions (such as deposits) and deduct negative ones from the bank balance. With QuickBooks Enterprise software makes the process easy and quick and the user is allowed to put tick mark the checks and deposits under reconciliation module under bank statement.
- Comparing the Balances:The below mentioned reasons may be one of the following situations:
○ Failed Transaction Recording: Usually, the user skips out the transaction related to check or a deposit sent out through bank but it is not recorded under company books. In this situation the user checks entire transactions displayed under the bank that is missing the cash balance.
○ Opening Cash Balance is Incorrect: The balance mismatch can happen when the user having incorrect opening balance where the reconciliation doesn’t happen. This circumstance crops up when the account is reconciled for the first time or the process is not complete in the last month.
For more information or you are still faces issues in Bank Reconciliation process through QuickBooks Enterprise software, immediately contact Reconcile Books.co. It is a well known support agency that comprises of proficient technicians trained intensively in respective areas of QuickBooks. Call to the Toll Free Number – +1844-640-1481 or choose online chat for instant support.