What Are the Different Methods for Cash Reconciliation?

Bank reconciliation is a contact form between the bank and the company for reconciliation. It is also a record that confirms the business transactions of the company. It can also be used as the basis for the company's capital flow. The most important thing is that the company's fund size can be determined for a certain period In many places, statements are required, such as: capital verification, investment, and so on.

Bank statements

A bank statement refers to a record sheet in which the bank objectively records the flow of corporate funds. As far as the concept of bank statement is concerned, the main body reflected in the bank statement is the bank and the enterprise, the content reflected is the funds of the enterprise, and the form of the reflection is the record of the capital flow of the enterprise. For its purpose, a bank statement is a voucher for checking and confirming the flow of funds between a bank and an enterprise. As far as its characteristics are concerned, bank statements have such basic characteristics as objectivity, authenticity and comprehensiveness.

In the tax review, if it is found that the funds are not recorded in the account, you must carefully find the reasons. There may be problems such as the unit being investigated paying cash for transactions, lending bank accounts, not accounting for income, embezzling funds, and falsifying bank statements.

(1) Paying transaction fees in cash and evading taxes

according to

The objectivity of the bank statement and the authenticity and comprehensiveness of its content have played an important role in tax review. It is not only the main point and entry point of tax review, but also the most important legal evidence. Therefore, in the tax review, the review of corporate bank statements needs to adopt appropriate methods and methods to achieve the purpose of tax review.

(1) Based on logical relationship review

Obtain all bank statements for the current period. According to the degree of importance, combined with professional judgment, the banks associated with corporate bank statements

First, bank statements help companies guard against risks. When companies check their bank deposit journals and bank statements, they often have different balances. Enterprises should first analyze the unaccounted items, and after excluding the effects of the unaccounted items, if the balance of the two still does not match, then analyze whether it is caused by operational risk, management risk or external risk.

The unaccounted account refers to the amount of money received and paid by the bank and the enterprise for the same payment. Due to different accounting times, one party has already entered the account and the other party has not entered the account. After the company compiles the bank balance reconciliation statement, it can exclude the impact of the outstanding account.

1. It helps enterprises prevent operational risks.

Operational risks mainly include: calculation errors in the calculation of accounting amounts by corporate accountants, errors in registering accounts, and accounting errors by bank operators.

2. Help enterprises prevent and manage risks.

Management risk refers to the lack of internal control system design or lack of necessary internal control system, so that the internal staff of the enterprise have the opportunity to embezzle the company's funds. There are two ways that insiders can embezzle corporate funds: cash or transfers.

(1) Appropriation of corporate funds through cash. Corporate financial personnel use cash checks to withdraw cash. If the cash is not recorded after the cash withdrawal, although the actual cash of the enterprise is reduced, it will not be found without reconciling with the bank.

Accounting entries needed to withdraw cash:

Borrow: Cash

Loan: bank deposit

(2) Misappropriation of corporate funds through transfers. When a company transfers money, the decrease in bank deposits usually requires an increase in another asset (such as inventory) or a decrease in liabilities. The entry for the bookkeeping is:

Borrow: an asset (or a liability)

Loan: bank deposit

Embezzlement of corporate funds through transfers will not be recorded. No matter which method is used to embezzle corporate funds, the bank deposit journal will not be recorded. Therefore, reconciliation with the bank is extremely important.

3. Help companies to prevent external risks.

Cases of embezzlement of corporate funds by outside personnel occur from time to time. The usual method is to imitate the unit's seal and bank notes, and even the appearance of "clone tickets", the banks cannot 100% identify these problem notes.

Second, bank statements are helpful for corporate financial management. The bank statement helps the company to prevent financial risks. At the same time, based on the statement, the company can prepare cash (bank deposit) income and expenditure plans and check the implementation of the financial system.

1. Bank statements help companies prepare cash income and expenditure plans.

One of the basic principles of corporate financial management is "living within your means". Due to debt receivables such as accounts receivable, the actual income may not provide 100% guarantee for future expenditures. Therefore, enterprises should pay full attention to bank deposits. How much bank deposits an enterprise has, can only be accurately determined after checking with the bank, and based on this, a cash income and expenditure plan can be prepared to avoid issuing short checks (which will be fined and triggering the corporate credit crisis) and falling into a payment crisis.

If the company's net cash flow is an outflow, then the company should adjust its spending rules or use some methods to enlarge the company's funds, such as: strengthening the collection of accounts, using the method of differential acceptance bills to pay for goods, and negotiating with the purchaser to use part of the credit Purchase of raw materials, short-term loans, etc. However, the use of these methods must be cautious, taking into account the actual future solvency.

2. Help companies check the effectiveness of their financial systems.

Bank-enterprise reconciliation helps companies to check the effectiveness of their financial systems and prevent management risks. By analyzing the problems found in the bank-enterprise reconciliation, it is judged whether the relevant financial system is effectively implemented.