Reconciliation is an accounting process which inputs two sets of same records from two different points to ensure that the recorded figures are correct and commensurate with each other. It is often considered a lengthy and tiresome activity by the accounts and finance department executives as it involves reconciliation of huge amount of data. The reconciliation work requires expertise in domain knowledge of accounting and finance and matching skills set for accurate and diligent flow of information. By verifying the accuracy of each data and record input, the Corpseed account reconciliation team identifies errors and inconsistencies requiring correction, and reconciles the final balance accordingly
Corpseed offers the following reconciliation services:
- Bank Reconciliation
- Inventory Reconciliation
- Vendor Reconciliation
- Customer Reconciliation
When to Reconcile?
Corpseed Reconciliation Team performs the reconciliation services every month when the bank statement is issued for a particular business entity. It helps in reviewing income & expenses and comparing what bank has recorded with what the company employees have recorded. We tend to prepare bank reconciliation statement every month so that it does not become a cumbersome and totally unmanageable process at the end of the financial year at the time of closing the books. Hence, we provide bank reconciliation outsourcing services to organizations that do not have relevant knowledge and consider it a tedious task.
How to Reconcile?
When a bank statement arrives, we compare transactions in the bank account to the check register of the same period. Both, the statement and the register should have same number of transactions. The purpose of preparing bank reconciliation statement is to match each line in the statement with the register.
Importance of Bank reconciliation
- Catch Fraud- Bank reconciliation services help to check accuracy of cheques presented and whether the transfers or withdrawals made are authorized or not.
- Prevent Problems- It also helps in early detection of problems that might lead to bigger problems in future if not paid attention at the right time like availability of sufficient funds, correct evaluation of accounts receivables or payables, bank errors, etc.
- It is a process where actual physical stocks are checked and recorded in the system.
- We offer inventory reconciliation services by comparing the written inventory in records with the actual physical inventory present in the warehouse. It is considered essential for warehouse staff to keep a track of replacement items, to correctly value the inventory and to ensure that the products are available when needed.
- The In-Out register of the warehouse is accurately matched with the books. The inventory valuation method (FIFO, LIFO or any other method) prevalent in the actual course of action is reconciled with the books.
- The reconciliation of accounts payable is the process of matching outstanding vendor balances to the payables amount stated in the general ledger.
- This is done to see whether the vendor is charging correctly for the products or inventory you have received. This is also done as a part of month end closing activity to maintain transparency in the financial statements.
- The reconciliation of accounts receivable is the process of matching the outstanding customer balance to the receivable amount stated in the general ledger.
- This is done as a part of month end closing activity before issuance of monthly information system (MIS) to check for all the due payments to be received and maintain transparency in the financial statements.
Choosing Corpseed for your outsourcing requirements enables you to enjoy a wide range of benefits that few other outsourcing providers can supply. Our major differentiators are:
Superior accounting software
At Corpseed, we use ZOHO accounting software for customers’ account reconciliation services. We are familiar with various accounting applications such as Pro Tax, Sage Line 50, Quicken, MYOB, Peachtree, IRIS and Lacerte.
Trained and experienced accounting professionals
At Corpseed, we hire only trained accountants with prior 2-5 years of experience in the field of account reconciliation services. All our accounting professionals are adequately trained in ZOHO and other accounting software and can provide electronic or manual accounting as desired by the customer.
State-of-the-art data security systems
Our constant endeavor is to protect the data of our customers. We ensure the complete confidentiality of our client company's internal information with Non-disclosure and Confidentiality Agreements, secure web servers and VPN (Virtual Private Network) protection. We also have a secured set up at our off-site service centers employing encrypted file servers, systems protected by rotational passwords and biometric restricted access for authorized employees only.
Compliance to all the accounting laws and regulations
Performing the activity of accounting compliance is extremely important, as every transaction has to be completed and recorded as per the laws and regulations laid down by GAAP, ROC, MCA, RBI and SEBI. At Corpseed, we leave no stone unturned to constantly keep ourselves updated with the changes in accounting laws and regulations.
Streamlined procedures to maintain accuracy
We deploy Lean Sigma Six for quality control procedures using automated reports and online tools to achieve high levels of accuracy and transparency. Every financial document and transaction has to undergo stringent scrutiny parameters and is rechecked twice to ensure accurate tracking of transaction and accounting data.
Cost-effective and convenient
When a business entity chooses to outsource its account reconciliation services to us, it helps in significant cost cutting as compared to setting up and maintaining an in-house reconciliation team. Outsourcing of any business activity to domain experts results in reduction of administrative expenses, enhanced protection against fraud, and access to a faster, more convenient way of tracking accounting and transaction data.