Party and bank account reconciliation


A bank reconciliation is the process of matching the balances in an entity's accounting records for a cash account to the corresponding information on a bank statement. The goal of this process is to ascertain the differences between the two, and to book changes to the accounting records as appropriate. The information on the bank statement is the bank's record of all transactions impacting the entity's bank account during the past month.

A bank reconciliation should be completed at regular intervals for all bank accounts, to ensure that a company's cash records are correct. Otherwise, it may find that cash balances are much lower than expected, resulting in bounced checks or overdraft fees. A bank reconciliation will also detect some types of fraud after the fact; this information can be used to design better controls over the receipt and payment of cash.

Third Party ( customer or vendor ) Account Reconciliation

Customer or vendor Reconciliation is the process by which a bookkeeper compares the outstanding customer or vendor balances with the accounts receivables or payable in the general ledger.

Ideal Timeline: The ideal scheduling for the customer or vendor reconciliation services every month’s end as a part of the accounts closing activities before the issuance of the monthly financial statements.


With regular customer/ vendor reconciliation, you can eliminate the possibility of error in the business’ receivables/payable records.

It also prevents material errors in the financial statements of the firm that business’ draft at the end of every month.

Your business is able to avoid bounce payments and missed transactions which eventually helps your enterprise save revenue.

Regular accounts receivable/payable  services are able to facilitate as an internal auditor while auditing accounting records.