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      Understanding Importance of Account Reconciliation on Monthly Basis

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High sales and turnover, low operating costs and increasing profitability are all apparent hallmarks of a well run company, but a few think about the backup services that go into maintaining high operating efficiencies.

High sales and turnover, low operating costs and increasing profitability are all apparent hallmarks of a well run company, but a few think about the backup services that go into maintaining high operating efficiencies.

This component is a precise and accurate accounting system without which any company will be beset with problems, whatever may be the level of growth or performance. It is not to assume that accounting is a separate entity. The point is that having updated accounting systems and access to reports whenever required enhances the decision making process and enables owners to instantly cash in on opportunities that do not arrive every day.

To achieve this level of consistency, focus should be account reconciliation on a monthly basis. As will be seen in some detail, there are many benefits to it. It is also a fact that most companies opt for Accounts Reconciliation Services as it ensures quick and accurate implementation of this process.

Why then is it so important? Consider this scenario. A check received by you is marked in the cash book, but not deposited in the bank. Based on your internal head of account which is showing the inflated amount over actual cash in the bank, you take a few business decisions. Naturally, it will come to naught as in reality there is less amount than you thought there is. By having this head reconciled every month you can be sure that you are on firm footing when you plan for the future. You also have an accurate picture of your receivables and payables, two very crucial components of cash flow and working capital requirements.


The importance of account reconciliation can be further understood if the accounting heads in question are analyzed - 


·         Credit Cards Reconciliation – More often than not, the perceived accessible limit is not what is actually available. This is because a purchase made by you at the end of the billing cycle might not be reflected in the statement received by you. Conversely, a credit made by you might have missed the cutoff point. If you take the statement received by you, subtract the purchases made from the limit available and add the deposits made after the bill date, you get a true picture of the state of your finances. It will save you the embarrassment of over-drawing your limit. Rather than having your accountants doing it, entrust it to an outsourcing firm along with the company’s reconciliation activity. This is especially useful for corporate cards where a whole lot of different cards have to be simultaneously monitored. 


·         Bank Reconciliation – The importance of this exercise has already been discussed in some detail. There is no doubt that a company’s fortunes, both in eliminating fraudulent transactions and knowing the true state of finances largely depends on the bank reconciliation. However, keeping track of hundreds of vendor payments and receipts from creditors is a very complex process. Even though a bank statement is received once a month and the reconciliation process can start only then, outsourced reconciliation services keep a close track of all transactions throughout the period so that monthly reconciliation is completed without delay. 



The importance of monthly Bank Reconciliation is further fortified if the positives are evaluated–


·         Arriving at the true cash position – Since there will always be a time gap between what is entered in the cash books of the company and what is posted in your bank account, there will be a constant difference between the two. Only when the two are balanced while the correct picture emerge and give an exact position of the cash reserves of the company which can be utilized for expansion or product launches. This is also very important when annual balance sheet is prepared as the state of finances has to be placed before stakeholders or financial institutions.


·         Helping to eliminate fraudulent transactions – In this case, accounts reconciliation services play a major part by implementing a speedy settlement process. When external outsourced agencies and banks are only involved in the reconciliation process, any attempt by company insiders to push through fraudulent transactions is immediately negated. Further, any mistakes made in the course of business will be rectified at the end of the month without delay. Small discrepancies if left un-rectified for long can blow out of proportions. 


·         Balancing all heads of accounts – Most account heads in any organization are interdependent on each other. If you have purchased software, you must have issued a check to the vendor by debiting a purchase account and crediting cash head. The bank account is also debited when the check is presented for payment. By reconciling bank balances you are sure that both the two heads are balanced under the double entry system of bookkeeping. This can be true for other accounts as well.



All these pointers prove the importance of account reconciliation on a monthly basis.


For top of the line accounts reconciliation services, get in touch with Cogneesol Pvt. Ltd. We provide a speedy reconciliation process. Simply upload your invoices and vouchers to us and we’ll update your system so that accounts reconciliation is carried out without a hitch within set time frames. Contact us at

Finance and Accounting Services

An Insight to the Latest Accounting Trends to Follow

Finance and Accounting
Finance and Accounting

Accounting hasn’t transformed a lot since the beginning of the time. Expenditures continue to be expenditures and earnings are still earnings. The bottom line is nevertheless a fantastic indication of your company’s all-round financial health.

However, simply because accounting is an art and science which has been set up since the very first products or services were traded in, doesn’t imply that all accounting companies are identical. Certain companies are a lot better at staying updated on latest accounting trends, leveraging today’s technological know-how to offer excellent accounts outsourcing services, and providing better value to their clientele.

Let’s take a look at a couple of accounting trends and how they have impacted swiftly expanding businesses with earnings between $1 and $25 million annually:

Cloud-Based Accounting Services:

Companies have already been discussing “the cloud” for quite some time now, and, honestly, accounting firms that are not making use of cloud-based accounting services are doing their customers a dis-service.

As opposed to lumping just about all cloud-based accounting services into a single category, let’s discuss the kind of services the ideal accounting firms ought to be using. 

Whenever you outsource bookkeeping services, the cloud-based accounting software program being put to use must comply with international standards for security and safety within a data center, which implies that the data is saved and encrypted by means of SSL technology. The data needs to be backed up consistently, with backups being saved remotely to make sure they are obtainable even if the data center encounters a natural calamity.

In a nutshell, your information needs to be safer and better shielded than it might be if you decide to host it locally on your own server.

Accounting Software Integration:

Not only has accounting software program transferred to the cloud, offering superior security, far better accessibility, increased data protection and scalability as compared to business owners that have with locally hosted software techniques, however accounting must integrate seamlessly with other business procedures. 

Enterprise-level accounting software program must be able to integrate with inventory management software, client relations software, marketing and advertising software and payroll, providing entrepreneurs an eagle’s eye view of the all-round condition of their company anytime, if needed. Whenever you outsource bookkeeping services, nowadays, you might receive a lot more than just virtual bookkeeping. 

A Lot More Companies Outsource Accounting and Bookkeeping:

With all of the additional functions that accounting firms can furnish with cloud-based accounting software, there’s almost no requirement for today’s accountants and bookkeepers to operate from your workplace, or even pay a visit to your office.

A lot of entrepreneurs seeking to outsource bookkeeping or accounting understand they don’t require a full-time, in-house employee. Best accounts outsourcing companies offer full-charge bookkeeping services for approximately the same amount, or even lesser, as compared to businesses typically paying an in-house accountant. 

Whenever you take into account the office space, advantages along with other operating costs linked to in-house staff, you’ll notice the greater value that accounts outsourcing companies render.

We at Cogneesol can help you to figure out your accounting requirements and put in place a proper accounts outsourcing services plans to match your requirements. 

Call us at +1 646-688-2821 to get started today.

Finance and Accounting Services
Finance and Accounting Services

Cogneesol – A Pioneer in Finance and Accounting Outsourcing Services – Contact for Bookkeeping, Accounts Payable and Receivable,Tax Preparation and Payroll Services.