What is reconciliation of receivables?

Receivables agrees is the type of accounting task that requires a careful comparison of printed documentation related to the transactions of receivables with items that are actually made in accounting records. This approach helps to identify any discrepancies that may be present and correct them as part of the total reconciliation of accounting records. The frequency with which this type of activity takes place will vary from one company to another, but is generally performed monthly or at least quarterly. This will often mean a return to all documents related to receivables after the time period. For example, reconciliation may include a comparison of banking deposits or FNEBO receivables, a specific data that makes sure that the amount is the same as the amount sent on customer invoices. At the same time, this process will also require ensuring that payments on these invoices correspond to the amounts stated in the receivables.

In many cases, it helps to identify the reconciliation of receivables with common errors that can be broadcast from clients' payments or even preparing banking deposits of these claims. A closely comparing the support documentation it is possible to find out whether the numbers were translated or whether the payment was published on the correct outstanding invoice. Many problems identified during this type of reconciliation can be corrected with small efforts, resulting in completely accurate and fully reconciled.

Decision for implementing receivables regularly make receivables very much benefit, some of which have decided to perform daily or weekly reconciliation. Even with a small enterprise, you make time to make reconciliation every month, save a lot of time and resources, while allowing any dubious accounting processes that can take place. Assuming the reconciliation is performed several times in each calendar year is part ofAbout easier to record any irregularities, examine them and eventually align them with relatively small problems. Performing receivables just before the audit is often a good idea, because the process means books that are flawless, something that helps the audit to be simple and easy to manage.