Definition & Real Meaning of Reconciliation
Account reconciliation means comparing transactions that the user records for financial account credit card, monthly statement from any bank or financial institution. It helps in ensuring identical accounts record. If you use personal financial software, you will have your financial records in the form of accounts register that will always keep you updated. When your personal financial software reconciles accounts, the software will start performing all your tasks. You just need to keep check on the items that clears. In the end, you will have time to pay overdraft and over limits.
Bank Reconciliation is considered as the ultimate solution for those business owners or individuals you are confused or ignorant of outstanding checks, further if not handled properly can lead to checking their account. The bank reconciliation needs to be carried out on a monthly basis for their account. With the help of this process the user can track the total cash flow within the company with a great ease and able to know the available cash in hand. It is a very simple process but there are situations when it becomes complex when there are multiple transactions selecting QuickBooks accounting software Enterprise version. The various steps that are involved under QuickBooks Enterprise Bank Reconciliation process are mentioned below:
- Extensive Research amid Company Books and Closing Balance of the Bank: It is always beneficial to compare the books and it is recommended that it should be carried out at regular intervals. With the help of QuickBooks Enterprise version program the bank reconciliation process becomes simple.
- Maintain Bank Transactions to the Balance of the Books: Sometimes the credits and debits are approved by the bank account and further not entered in the company books. The QB Enterprise program process the transactions with the help of supplemented positive transactions and removing the negative transaction from the company books cash balance. Most of the professional doesn’t know how to reconcile books in accounting software .
- Entering Company Book Transactions to Bank Balance:The remaining amount that is not cashed are entered in the company books and shown in the bank statement along with the deposit amount. The QuickBooks Enterprise application adds the positive transactions and deduct negative ones from the bank balance. With the help of QuickBooks Enterprise software the the reconciliation process is smooth and quick and it assists the user to put a checkmark against the checks and deposits under reconciliation under the bank statement.
- Compare Both the Balances:The reasons mentioned below might be one of the scenarios:
○ Recording Failed Transaction: It happens that the user tends to skip the check or deposit related transaction passed via bank but not entered under company books. This scenario allows the user to verify all the transactions displayed under the bank where the cash balance is missing.
○ Incorrect Opening Cash Balance: The opening cash balance may not match and this happens in case the user has improper/incorrect opening balance where the reconciliation fails. This situation rises when it is the first account reconciliation or the process is incomplete in the previous month.
In case you have any query or doubt related to bank reconciliation with the QuickBooks Enterprise software Support, connect with ReConcileBooks, a famous QuickBooks support agency. The agency hires top QB professionals with in depth product knowledge and comprehensive experience. Connect with the team by calling the toll free number – +1347-967-4079