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Bank Reconciliation Statement Services in Dubai

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Bank Reconciliation Statement Services in Dubai

Each organization conducts its financial transactions manually and through digital banking, regardless of its size. Banking is one of the fundamental components of any financial operation. Businesses conduct thousands of transactions on a daily basis, and keeping an eye on each one is quite challenging. Because bank account accuracy and compliance is the most concerning factor for entrepreneurs. Our chartered accountants offer quality bank reconciliation statement services in all parts of the Emirates. Let’s learn more about what we do!

What Is Bank Reconciliation?

A bank reconciliation statement is a comparative analysis to find out the difference between a bank cash book and the company balance sheet. It can be used to reconcile financial records with bank accounts and provide an overview of banking activities. A bank account statement is a list of deposits, withdrawals, and other activities for a certain period. Regular bank reconciliation is obligatory because we can’t rely solely on banks. It is an excellent way of detecting mistakes or frauds before they cause loss to your company.

Purpose Of Account Reconciliation

The main purpose of reconciliation is to avoid negligence in the company’s bank account. Businesses can’t blindly depend on the functionality of banks. Therefore account reconciliation is performed to detect errors and frauds in the cash books. In this way, accountants can prevent organizations from facing significant losses in the future.

Is Bank Reconciliation Mandatory In UAE?

Bank reconciliation is not mandatory for businesses, even though it’s not negligible in the United Arab Emirates. There is no fixed date or time frame for preparing a bank reconciliation statement (BRS). This analysis of bank accounts is performed periodically in the companies. Through the reconciliation process, any adjustments or corrections can be made.

Bank Reconciliation Process In Emirates

There are some basic steps to performing a bank reconciliation in the UAE. Our accountants follow this below-mentioned procedure to detect and avoid suspicious activities in the books of accounts.

1. Collect Bank & Business Records

The foremost step is to gather all the bank and organization records. The business owner is allowed access to the reconciliation accountant to review all the transactions that are being conducted by a person or organization. The bank authorities provide you with a detailed report for daily financial transactions. Then you need to collect business records that a company maintains on its end. Our chartered accountants in UAE will analyze both statement similarities and differences to start your account reconciliations.

2. Fix Duration For Reconciliation

The next step is to fix the duration of bank statement reconciliation. It is really important to identify a starting point. If you reconcile bank and company records randomly, it will not achieve anything. Therefore, it is advisable to start the process from where you ended last time.

3. Evaluate Bank Deposits & Withdrawals

This is a very critical point at which the accountant has to review bank deposits and withdrawals from the company’s account. We will examine added and withdrawn amounts that are mentioned in the cash book of bank and business records. Make sure that the deposit amounts in the business records match those on the bank statement.  Moreover, if you notice a mistake in either or both, make sure the mistake is fixed and ask the bank authorities about it as well.

4. Check Income And Expenses

The verification of the company’s income and expenses is not an ignorable part of the bank reconciliation statement. Many businesses make cash payments and don’t record them in their cash books which creates problems in the future. The accountant has to record all expenses in bank and company accounts.

5. Regulate Bank Statements

After you account for all the expenses and incomes, the next you have to regulate the bank statements. In this part of the reconciliation process, the accountant has to deduct outstanding checks, add deposits in transit, or clear mistakes in the record. It will adjust the bank statements and avoid errors or differences.

6. Adjust Cash Balance

Aligning the cash statement and the cash balance of the company is equally important.  The reconciliation accountant has to clear the bills & payments, non-sufficient funds deduct monthly charges, and get account receivables. This is all essential to adjusting your cash balance.

7. Correlate Final Balance

Once the cash balance and bank statement are adjusted the accountant will move to the next and final step of the reconciliation process. At this point, the accountant assures that the final balance should be the same in the bank and company records. After this business can prepare journal entries to assure proper control in the company. If the account is not handled correctly, you may end up with a loss of balance. Our chartered accountant will compare your final balance and repeat the reconciliation process until the balance is equal.

Why Should You Reconcile Your Bank Account Frequently?

The frequency of bank reconciliation statements depends entirely on the business owner. The account reconciliation can be performed on a daily, weekly, or monthly basis. Small businesses mostly prefer weekly or monthly bank account checkups. Although, large enterprises reconcile statements each time they receive a statement from the bank or at the end of each day.

Advantages Of Bank Reconciliation Statement 

Reconciliation of bank accounts has several benefits for each small and large organization, including:

  • Determine calculation errors when double payments or missed payments have occurred.
  • Track bank fees and penalties.
  • Ensure the accuracy of cash books & passbooks.
  • Improve cash flow as well as a balance sheet.
  • Evaluate the accuracy of accounts payable and receivable.
  • Track misappropriation of cheques & bank drafts.
  • Recognize unauthorized transactions and theft.

BestaxCA: Bank Reconciliation Statement Services

Bestax Chartered Accountants and advisors offer bank reconciliation statement services in UAE. Our team picks out the difference or similarities in your account balance and the corresponding bank statement. Businesses can rely on us to stop fraud and legal issues so that they can fully focus on their business goals. You gain more than just accurate financial statements by employing BestaxCA accounting & bookkeeping services. Additionally, our reconciliation accountants ensure compliance with regulatory requirements. Let us know how our financial advisors help you!

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