Some reasons for differences arise due to checks that are issued but are not yet presented by the receiver, checks that have been sent for collection but are not yet collected, bank fees and charges, checks dishonored by the banks, interest paid by the bank on the balance, direct payments made into bank, cash payments and bills that are rebated by the bank. To avoid these discrepancies, a bank reconciliation statement is prepared.
To avoid manual errors and frauds
Another reason for the preparation of a bank reconciliation statement is to identify any frauds committed by the accounting staff. A staff could make an entry in the bank column of the cash book, but may fail to deposit the check in the bank due to negligence or with an intent to fraud. This statement also helps to keep a watch over the activities of the accounting staff and ensure that they are honest towards the business. Any manual errors made by the staff can also be identified...
friend who is in a position of authority in a company should be aware of all accounts that the company has in the bank. Just because he is not a CEO or CFO in a company doesn't mean he should be ignorant about banking, about what is profit and what it is not, and how to reconcile money in the bank. Just having money in the bank means nothing
Accounting System Implemented at Chic Paints Limited Report submitted in order to fulfil the requirements of AAT Accounting Qualification Internal Controls and Fraud Accounting System Review Weaknesses in the Existing System and Recommendations Cost and Benefit Analysis Mapping of report to outcomes and criteria The purpose of this report is to present the findings of the evaluation of existing accounting system implemented at Chic Paints Limited. Chic Paints Limited hired me as an Accounting Technician of
On this front, I was instrumental in the identification of an existing opportunity for the company to further enhance its revenues through the sale of Bath Products. Today, thanks to my efforts and those of my colleagues, our company is regarded a model for all other distributors of bath products. Like it has been the case with my previous accomplishments, this particular event also presented me with a valuable
Internal Control In the United States, all corporations planning to go public have to maintain an adequate internal control system. LJB is a small company that does local distribution and wants to go public. The president has decided to get an independent audit firm to carry out the assessment while identifying its areas of weakness. In case failure is reported by this audit firm, it could be fined or the officers
Once the invoice is received, the accounting personnel should check if it matches the pending purchase order. The data introduced in the accounting system should roughly include the following: the current date, the invoice date, the purchase order number, the General Ledger account number and the amount of the actual invoice. The check must be completed and any supporting documentation should be attached and forwarded to the Office Manager for
Role of Accounting on Business and Our Society Financial statements play a key role in reporting the financial performance of a business besides helping managers to make better decisions. Business leaders often would interpret the different financial statements in order to understand the position of their business, the necessary risks that their businesses are facing, and the financial actions that should be taken to make the business to grow. All the
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