Accounts Reconciliation Is the Key to Detect Fraudulent Transactions: WHIZ CONSULTING

GORDON, Australia - April 28, 2022 - PRLog -- In simple terms, accounts reconciliation is the comparison of the money to be spent with the money spent. The accountants perform a systematic process to record correct balances in the accounts. The internal balances are compared with the external balances or a third-party record to determine if any difference occurs. The accountants perform account reconciliation with business owners to detect fraud or monetary discrepancies.

Reconciliation of accounts consistently helps business owners to:

• Avoid any balance sheet errors that may lead to adverse consequences.
• Ensure accuracy and consistency of financial records.
• Make accurate financial decisions
• Detect any pecuniary inconsistency in the financial records.
• Maintain solid relationships with vendors and suppliers.

Earlier, business owners conducted manual methods to reconcile accounts, but businesses are transitioning towards automation since the introduction of cloud accounting software. Manual processes arise the possibility of human error leading to adverse situations, whereas, with cloud accounting software, human errors are minimised, giving better accuracy. Automating reconciliation reduces operational costs, errors, ensures data security, improves accessibility, and increases efficiency. With the introduction of automation in the process, an additional layer of security is added. At the same time, human resources can allot more time to the creative and strategic part of the business.

Reconciliation of accounts can be initiated weekly, monthly or quarterly as per the convenience of the business. However, businesses that involve high volume transactions or are industry-related should reconcile accounts more often due to the increased chances of fraud or discrepancies.

https://www.whizconsulting.net/au/services/accounts-reconciliation-services/