IMPORTANCE OF BANK RECONCILIATION FOR MULTINATIONAL EMPLOYEES
Accountant and business consultant
This paper reviews the attempts to avoid experiencing differences in bank reconciliation. The difference is likely to occur due to bank charges which are included in the bank statement but the company finds later via a bank statement. Additionally in order to avoid creating difference in the banks records and the company`s it is required of the company to always view the bank statement online in order to be in update with the account balance available in the bank. This paper seeks to explain the best methods of conducting bank reconciliation.
Most companies have general ledger account which contains information that is used to prepare financial statements. It holds all the transactions either in written form, checks or receipts that involves its checking account. A company`s checking account is created to be useful in the process of checks and deposits. On a monthly basis, the bank ensures that the company receives a bank statement via an email which entails all the information about any deposits done in the recent month as well as the bank account balance. When the company receives its bank statement, it verifies whether the amount reading on the bank statement is compatible with the company`s cash acc...