Debtor Reconciliation is the reconciliation of balances between branch to branch transactions or branch balances with Head office balances. For the transaction between the inter branch or with HO, generally there is postponement in information or communication, reconciliation is stress-free if you understand the transaction as the one branch is debtor and other is creditor(it depends on the transactions) and it will be similar to debtor reconciliation.
Through debtor reconciliation we can know what are the entries that is posted in one books & not in the other it is just as same bank reconciliation and it serve the same determination.
In an enormous business concern we have to contract with so many parties that we cannot keep track of all the transactions with them every time. So in order to see or confirm whether all the entries as per our accounts are tallies with the other party account and vice-versa. We organize an Account Statement of the concerned party as per our books for a certain period and send it to the concerned debtor for his verification. On receiving that Statement the Debtor will check it for its correctness and if there is there any difference he will intimate the same. The difference might be due Goods in Transit,Cheque issued but not received through the party ,interest for delayed payment charged through the party but not acknowledge or for cash or quantity discount.
So the purpose is to find out any difference as early as possible so that there must not be any argument later on. Secondly it also acts a check against mishandling of the fund through the concerned employee. First we have to reconcile with the debtors, i.e payment made by them. Then we have check out the both opening balances of the entire debtor (Clienteles), & Check out the receipt vouchers.A debtors reconciliation is to make sure that the balance brought forward and the closing balance tally. Reconcili payment and invoices
The main benefits of working with Reconciliationaccounting are below:
Consistent Data Source – Reconciliationaccounting business give you consist and precise data which can be easily used for the benefits of the decision-making desires. This in turn guarantees competence in workflow and there is no expenditure of time.
Maximize your ROI: Reconciliationaccounting work give significant cost reduction and gives you high Return of asset.
High Superiority Work – Main benefits of Reconciliationaccounting work is to get high quality work as per your needs with reasonable rates.
Securities, Uniformity, Rapid growth, Speed, services and improve customer satisfaction, improved presentation, Backend effective work environment these are main goal of Reconciliationaccounting.
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