Account Reconciliation Services In Dubai, UAE

Accounts reconciliation is the process of verifying an organization's financial records in order to identify any deficiencies and, if necessary, reconcile them for future financial planning. A good accounts reconciliation procedure ensures that two sets of records or the balances of two accounts agree. By following the reconciliation process, a company can ensure that the money leaving an account matches the actual money spent.

Legal issues, maintaining the confidentiality of vital data, and the possibility of fraud and corruption are all high risks for SMEs and MNCs in the UAE. In this regard, CAPELLA experts in Dubai, UAE provide the best accounts reconciliation services to eliminate and eradicate these issues. Account reconciliation services include the following:

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1. Bank Statement Reconciliation Service

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Companies that have a large number of transactions, whether online or cash/cheque deposits and withdrawals, etc., will have a time-consuming accounting department. In such cases, they should consider outsourcing the bank reconciliation process.

To proceed with the reconciliation of a bank statement, CAPELLA experts compare the given bank account balance to the business's general ledger.

The Steps to Reconcile a Bank Statement

• Equate the Deposits

• Adjust the Bank Statements

• Adjust the Cash Account

• Equate the Balances

Once the balances have been equalized, CAPELLA experts assist businesses in preparing journal entries for the adjustments to the balance per books. Timely bank account reconciliation is critical to ensuring proper control and a sufficient balance of funds in the company.

Advantages of bank reconciliation process:

• • Assists in year-end account closing

• • Assists Receivable departments in sending updated SOA on time

• • Assists in generating more accurate and up-to-date balance of payables and receivables of the business

• • Detects mistakes such as double payments, missed payments, calculation errors, and so on

•  • Detects deceptive transactions and theft

• • Improves cash flow

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2. Vendor Reconciliation Service

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CAPELLA provides Vendor Reconciliation Service to a company when reconciling the supplier ledger and the supplier's accounts statements becomes difficult. It occurs when there are a large number of transactions and records such as discounts, rebates, returns, and so on are included in the contract.

Advantages of reconciliation of vendor payments:

• Avoids the trouble of later supplies;

• Avoids reimbursing the wrong vendor;

• Recognizes missed payments from your vendor;

• Aids in avoiding over-payment;

• Establishes a relationship between dignified trade and veracity; a]

• Ensures that all suppliers' accounts are consistently credited with the invoices received for the supplies made for.

• Ensures that purchase returns are properly debited in the supplier's account.

• Ensures that discounts/rebates, etc. received from suppliers or in accordance with the terms agreed upon with them are correctly reflected as debits/charges to their accounts.

• Manages the credit policy, resulting in efficient cash flow management.

Materials Required:

• Supplier ledger statement • Debit notes delivered to suppliers • Credit Notes acknowledged from suppliers • Invoices acknowledged from suppliers • Replica of bank statements for payment verification • Replica of ledger account from suppliers • Replica of Contracts/Agreements filed by the company's administration with suppliers

 

3. Customer Reconciliation Service

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CAPELLA provides Customer Reconciliation Service to a company when the number of transactions made by the company exceeds a certain threshold and additional considerations such as discounts, rebates, returns, and so on are included in the contract.

Advantage of customer reconciliation service:

• Ensures that all customers' accounts are always debited with invoices issued for supplies provided to them.

• Ensures that all sales returns are correctly credited to the customer's account.

• Verifies that discounts, rebates, and other payments made to customers or in accordance with the terms agreed upon with them were correctly replicated as credits to their accounts.

• Effective collection strategy through the sending of updated SOA • Avoids conflicts between the company and customers • Ease of closing monthly accounts

Materials Required:

• Customer invoices

• Customer ledger statements

• Debit Notes received from them

• They have received Credit Notes.

• Copies of contracts/agreements entered into with customers by the company's management.

• Reproductions of bank statements for the purpose of verifying customer payments.

• Customer account statement/replica of ledger account

 

4. Inter-company Reconciliation Service

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Inter-company transactions are those that occur between the Head Office and its branches or between sister companies. For one reason or another, transaction recording does not occur in some businesses on time. The inconsistency between the accounts could be due to a lack of accountants, improper organization among related parties, exchange rate fluctuations, transportation delays, and so on. Experts from CAPELLA investigate the causes and reconcile the process.

Documents required:

• Replica of Contracts/Agreements recorded by the company with its sister concerns • Accounts report from the related party, sister concerns, or Head Office or branch • Accounts report from company Books of Account • Information such as invoices, debit notes, credit notes, payment details, and so on

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5. Prepaid Reconciliation Service

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Prepaid expenses are expenses such as insurance, rent, interest, and taxes, as well as utilities such as electricity, gas, water, sewerage, and so on, that are paid in advance by a company.

CAPELLA experts will examine the entire process and address the problem. Prepaid expenses are recorded on a company's balance sheet as a current asset until they are consumed.

Prepaid expenses are first recorded on the balance sheet rather than the income statement. The benefit of the prepaid expense is documented on the income statement once it is realized or incurred.

According to the Generally Accepted Accounting Principles (GAAP), expenses must be recorded when they are incurred. As a result, prepaid expenses are not recorded on the income statement when they are paid because they have yet to be incurred.

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Benefits of Proper Reconciliation and Closing of Accounts

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• Beneficial for External Auditing- Account reconciliation ensures that general ledger accounts are consistent, precise, and comprehensive. This ensures a smooth and authentic External Auditing process.

• Financial Statement Accuracy- Reconciliation ensures error-free financial reports by preparing accurate income statements, balance sheets, and cash flow statements.

 

• Beneficial for Decision Making- Reconciliation assists a company in understanding its operating condition and enables the owner to make strategic decisions for the company's future growth.

 

• Document Authenticity in Legal Cases- Because the experts prepare error-free documents, they can be submitted with authenticity in case of any legal issue.

• Reconciliation reduces the risk to the in-house accounting team by ensuring that documents are both authentic and false proof, and it saves them time.

• Reconciliation helps in preparation of effective cash flow because it helps the collection on time.