Accounting records errors can cause more than awkward circumstances when a check bounces or a business receives an annoying phone call from a creditor or payment provider that has cleared.
Bank clearing helps you detect fraud and reduces the risk of transactions that could result in fines and late fees. BRS offers several business benefits, including:
Error Detection: A bank reconciliation helps you identify accounting errors in every business. These include errors such as additions and subtractions, missed payments, and double payments.
Track Interest and Fees: Banks may add interest earned, fees, or penalty payments to your account. Monthly bank reconciliation allows you to increase or decrease that amount on your books.
Fraud detection: You may not be able to prevent employees from stealing your money once, but you can prevent it in the future. Bank statements help you identify and uncover fraudulent transactions. It is advisable to hire an independent person to do the reconciliation to prevent the falsification of your books and reconciliation by accountants.
Debt Tracking: BRS allows you to review all of your receipts, which helps you avoid embarrassment and identifies entries for receipts you haven’t submitted.