"The Companies Not Leaving Time for Reconciliation Fall Hard Later": Whiz Consulting

Whiz Consulting is a prominent name in offering automated accounting and bookkeeping services to various businesses in the US. Their accountants shared the significance of accounts reconciliation in current times. They said, "Often, the clients coming to us share their experiences and issues regarding inaccurate financial statements and errors from previous years. The analysis reveals that they postponed reconciliation or account preparation for so long that it leaves hardly any time for verification." 

Accounts reconciliation is the process of identifying discrepancies in financial accounts, ledger, and bank statements and correcting them. It ensures no inaccuracies or inconsistencies and improves data quality. Businesses must undertake reconciliation periodically, preferably after a month, based on data volume. Leaving it till the end can lead to compromised data quality and hidden errors. "Reconciliation is a critical control activity. Not finishing it on time can lead to harsh consequences for the business. It can leave errors and possible fraud, which may lead to serious financial problems," said the senior executive at Whiz Consulting. 

Under accounts reconciliation, businesses match their internal records with an externally prepared statement. Any unusual transactions can alert the company to stay prepared and correct deviations. These errors can be accidental or fraud. Accidental errors include:
•  Duplicate entries
• The error of omission under which you forget to enter a transaction
• The mistake of commission involves entering a correct amount in the wrong account or vice-versa.
• The errors of principle involve not following correct accounting principles
• Compensating errors are the hardest to find because they nullify the effect and require in-depth study. 

Deviations can also occur if the employees who manage accounts conduct fraudulent activities. For example, incurring $200 expenses, recording $400 in the books, and putting the balance in the pocket. Similarly, opening false accounts with fake invoices can lead the company to severe financial losses later. 

"Since businesses today are heavily occupied with core operations, accounting functions like accounts reconciliation take a backseat. Not giving it adequate time can financially trouble the company in the long run. Businesses should outsource these services to ensure the working does not face any hurdle," said the accountants at Whiz Consulting. Accounts reconciliation leads to clear and transparent financial statements. Also, it helps calculate and pay the correct tax amount. These errors and discrepancies can cause trouble with the government and lead to high charges and penalties. In some cases, it also attracts jail or such punishments. 

Accounts reconciliation does not limit to the bank. Businesses can conduct credit card reconciliation, customer, vendor, inter-company, and business-specific reconciliation. 
• Credit card reconciliation shows gaps or unauthorized payments, if any. 
• Customer reconciliation ensures both business and customer are on the same page regarding payment status, due date, the amount owed, etc. 
• Vendor reconciliation is similar to customer reconciliation, except every invoice gets checked thoroughly to ensure its authenticity. 
• Inter-company reconciliation enables evaluating internally prepared statements and comparing them with another company's prepared report. 
• Business-specific reconciliations differ for every entity. It may include inventory reconciliation- checking stock amount with actual inventory, cash flow reconciliation- cash flow statement and cash and bank balance, etc. 

For Accounts Reconciliation  - https://www.whizconsulting.net/us/services/accounts-reconciliation-services/

"Accounts reconciliation on time enables the company to prepare and present accurate statements to the stakeholders. Also, it helps in auditing and prepares the company for any inefficiency. There are no hurdles in decision-making. We prioritize and conduct monthly reconciliations to ensure our clients stay ahead of others," said the senior executive at Whiz Consulting. 

539 W. Commerce St #1596, Dallas TX 75208
+12143299080
info@whizconsulting.net
https://www.whizconsulting.net/us/

Whiz Consulting is a well-known name in outsourcing accounting and bookkeeping services. They employ a team of highly qualified and proficient professionals with vast experience. Their expertise spreads across numerous industries, namely law, marketing, e-commerce, healthcare, hospitality, real estate, etc. Moreover, they are experts in the latest technological advancements, including Sage, Xero, Zoho, QuickBooks, FreshBooks, and other cloud accounting options. 

Whiz Consulting is a premium brand of routine and specialized accounting and financial service providers. The latter category involves budgeting, forecasting, KPI reporting, business advisory, project accounting, management accounting, etc. 

This release was published on openPR.