Why is it important to perform it regularly?
- Detect errors and potential fraud, thereby preventing future problems.
- Have accurate and reliable financial information about the state of the business.
- Maintain better control over cash flow and accounts receivable, which helps in decision-making and anticipating financial needs.
- Fulfill tax obligations. To keep accounting records up to date, it is important to perform bank reconciliation at least once per quarter.
What do you need to complete a bank reconciliation?
- Bank statement for the period to be reconciled.
- Updated general ledger.
- Previous month's reconciliation.
- Verify that you are using the same account in both records.
How does Forge Flow help you?
Bank reconciliation is done automatically using the setup of your accounts and the transactions generated by your activity. The system will show you how it’s done. If everything is correct, you just need to validate it. However, if something doesn’t match, you can manually adjust it.
Additionally, you can define the rules you want the system to follow when reconciling, and even the order in which they should be applied.