Account Reconciliation Services
Account Reconciliation Services in UAE
AL MERAK provides expert account reconciliation services in Dubai, UAE for small and medium-sized businesses, corporate houses, and big organizations. Our experienced account reconciliation services ensure that the real account balance matches the relevant bank statement, eliminating fraud and legal difficulties and allowing our clients to focus entirely on their business objectives. Outsourcing account reconciliation services to a financial specialist like AL MERAK not only ascertains the correctness of your company’s financial statements, but also assures compliance with regulatory/statutory requirements.
Why Accounts Reconciliation?
The accounts reconciliation services include the following:
1. Bank Statement Reconciliation Service.
Companies with a large number of transactions, whether online or cash/cheque deposits and withdrawals, will find it time-consuming to engage with their accounts departments. In certain circumstances, outsourcing the bank reconciliation procedure is suitable.
To reconcile a bank statement, AL MERAK specialists compare the provided bank account balance to the general ledger of the firm.
The steps to reconcile a bank statement
• Equate the deposits.
• Adjust bank statements.
• Adjust the cash account.
• Equate the balances.
Once the balances are equal, AL MERAK specialists assist businesses in preparing journal entries for changes to the balance per books. Timely reconciliation of bank accounts is critical for maintaining effective management and an adequate balance of money in the organization.
Advantages of Bank Reconciliation Process:
• Assists with year-end account closures.
• Assists Receivable departments in sending timely SOA updates.
• Ensures correct and up-to-date balance of payables and receivables for the firm.
• Identifies issues such as multiple payments, missing payments, and calculation errors.
• Detects fraudulent activities and theft.
• Improves financial flow.
2. Vendor Reconciliation Service.
AL MERAK provides Vendor Reconciliation Service to a firm when reconciling the supplier ledger with the supplier’s account statements becomes increasingly challenging. It occurs when there are a large number of transactions and the contract contains data such as discounts, rebates, returns, and so on.
Advantages of reconciling vendor payments:
• Prevents issues with future shipments.
• Avoid reimbursing the wrong vendor.
• Recognize missing vendor payments.
• Helps prevent overpayments.
• Establish a link between ethical business practices and honesty.
• Ensures regular crediting of supplier accounts based on invoices for supplies received.
• Ensures purchase returns are appropriately deducted in the supplier’s account
• Ensures supplier discounts and agreed-upon terms are accurately represented as debits/charges to accounts.
• Manages credit policies for optimum cash flow management.
Materials Required:
• Supplier ledger statement.
• Debit notes sent to suppliers.
• Acknowledgement of credit notes from suppliers.
• Acknowledged invoices from vendors.
• Replica bank statements for payment verification.
• Replica of supplier ledger account.
• Replica of company-filed contracts and agreements with suppliers.
3. Customer Reconciliation Service.
AL MERAK provides Customer Reconciliation Service to a company when the firm has a large number of transactions and the contract includes additional considerations such as discounts, rebates, returns, and so on.
Advantages of customer reconciliation services:
• Ensures client accounts are credited with invoices for supply.
• Ensures any sales returns are correctly reimbursed to consumers’ accounts.
• Ensures that client discounts, rebates, and other agreed-upon conditions are properly credited to their accounts.
• Improved collecting strategy by transmitting updated SOA.
• Prevents disagreements between the firm and customers.
• Ease of ending monthly accounts.
Materials Required:
• Issued invoices to customers.
• Customer ledger statement.
• Received Debit Notes from them.
• Credit notes were provided to them.
• Replica of corporate management’s contracts and agreements with consumers.
• Verify consumer payments using replica bank statements.
• Obtain a statement of accounts or a replica of the customer’s ledger account.
4. Inter-Company Reconciliation Service
Inter-company transactions are those between the Head Office and its branches, or between sibling companies. Some firms do not register transactions on time for various reasons. The mismatch between the accounts might be due to a lack of accountants, inefficient organization among linked parties, currency rate fluctuations, transit delays, etc. AL MERAK professionals investigate the reasons and resolve the situation.
Documents Required:
• Replica of the company’s contracts and agreements with sibling companies.
• Report on accounts from connected parties, sister concerns, Head Office, or branch.
• Report based on corporate books of account.
• Information includes invoices, debit and credit notes, payment data, and more.
5. Prepaid Reconciliation Service.
Prepaid expenses are advance payments created by a business for items like insurance, rent, interest, taxes, and utilities. They are recorded as current assets on the balance sheet until utilized. Initially, prepaid expenses appear on the balance sheet, not the income statement. Once the benefit is realized, the expense is recorded on the income statement. Under GAAP, accrual accounting records expenses when incurred, not when paid, and prepaid costs are only recognized on the income statement once incurred. AL MERAK experts will review and resolve any issues related to prepaid expenses.
Benefits of Proper Reconciliation and Account Closing
• Account reconciliation is beneficial for external auditing as it assures consistent, exact, and complete general ledger accounts. This guarantees that the external auditing process runs smoothly and authentically.
• Reconciliation guarantees accurate financial reports, including income statements, balance sheets, and cash flows.
• Reconciliation aids decision-making by providing insight into a company’s operations and guiding strategic decisions for future growth.
• Experts produce error-free papers for legal submissions, ensuring legitimacy.
Reconciliation reduces the risk of fraud and saves time for the in-house accounting team.
Reconciliation improves cash flow by ensuring timely collections.
AL MERAK Accounts Reconciliation Services in Dubai
AL MERAK offers expert accounts reconciliation services, with a team that thoroughly reviews financial transactions and records to identify discrepancies, improving your company’s financial outlook. For years, they have provided reliable reconciliation services to clients across the UAE, helping businesses grow. In addition, AL MERAK offers CFO services, outsourced accounting, organizational restructuring, tax/VAT consulting, accounting software implementation, and due diligence services.
For inquiries about account reconciliation in Dubai or the UAE, contact their team of experts for assistance.
faq
Frequently Asked Questions on Account Reconciliation Servicesucturing Services
What is account reconciliation?
What services are covered in reconciliation?
What are the reasons for invoice and bank statement discrepancies?
What are the advantages of outsourcing a bank reconciliation statement?
What are Bank Errors?
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