Record to report / R2R – Reconciliations

Bank

We talked about reconciliations between multiple systems in the last two posts.

https://faoblog.com/processes-record-report-r2r-reconciliations-multiple-systems/

https://faoblog.com/processes-record-report-r2r-reconciliations-multiple-systems-2/

To add to the last post, in case of multiple system reconciliations, a brief technological understanding of the system and the fields captured in each system really helps.

As mentioned earlier, the process steps remain almost the same, and only the entity will change. Resolutions will not really need approvals as there will be no waiver / write-offs, except in some exceptional cases where details cannot be identified and the differences need to be written off.

Coming to the next category Bank Reconciliations. This is the most talked about reconciliation and the most traditional one too.

So here you are comparing the records of a bank account, as maintained by your bankers and your client’s / principal’s ERP system. Often there are components which need to be included in the client’s accounting books in form of charges and interest which will get reported only when the bank statements are received by the business.

—————————————————————————————————–

 

Have you been following our accounting blog?

https://faoblog.com/category/accounting-core/

—————————————————————————————————–

Subscription and Guest Post:

You may subscribe to the blog from the subscription box on the opening page of the blog. We have enabled a button on the top of the first page, which will enable you share your posts. If you wish to write about any of the current streams, you can do it at https://faoblog.com/guest-post/. We will review your post and release it within 48 hours of your posting. Please note, any irrelevant posts shall be deleted without information.