Optimize your Cash flow with Daily Reconciliation of Accounts
Posted by willoxgaulard on February 13th, 2018
There are various transactions that occur on daily basis or on regular intervals. The chances of discrepancies in such transactions are high (payments, checks not cashed, expenses on travelling and food etc.). These discrepancies can be easily controlled by regular and steady reconciliation of accounts.
Reconciliation of bank accounts gives you a clear picture of your financial figures which in turn helps you to invest strategically to grow your business in the right way.
Profitability and growth of any business depends on your right decisions at the right time. This is only possible if you have accurate and updated information but what is really shocking is the number of business owners who take decisions based on outdated or incorrect information provided by the faulty reconciliation bank statements. This mistake has some serious repercussions in the long run.
The benefits of accurate bank account reconciliation are numerous, but the biggest benefit besides accurate records, is that it allows you to have a clear overview of cash forecasting and you can take the advantage of your current working capital. This allows you to prevent over expenditure, gives you a clear performance indication when compared to your current cash flow status with projected cash flow.
Daily reconciliation of accounts enables you in making better reports and gives you a better understanding of the financial health of your business, whereas weekly or bi-weekly or monthly reports give you large amount of information which at times is not feasible to analyze without experts. Daily reconciliation gives you everyday insights into your accounts.
Daily account reconciliation also helps you to detect unauthorized or fraudulent transactions before they lead to some serious damage as this process detects any odd activity in your credit card or in bank account instantly.
Over the years many small businesses have failed due to bad management of accounts. According to a survey, businesses who manage their accounts properly have a success rate of 90% as compared to those with improper accounting practices. There are many more reasons as to why accounts reconciliation is critical for the growth and success of businesses.
Get in touch with us to learn more about our reconciliation services.Top Searches - Trending Searches - New Articles - Top Articles - Trending Articles - Featured Articles - Top Members
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