Did a reconciliation on a year of transactions

We have a customer who did not do their bank reconciliation for a year. At year end, they were cramming to produce their bank reconciliation for the external auditors. The external auditor will not sign on the audit report, unless the Company can reconcile the general account. The Finance Manager was looking for some easy and quick way to reconcile their general account. So, we recommended to him the following:

1) to download from their general ledger the whole year transactions of the bank account to be reconciled.

2) Next, they dowloaded from their bank the last six months of bank transactions, the other six months they copied to Excel from the actual bank statements.

3) Using EzyRecon, we processed and reconciled the whole year of transactions- the whole processing took less than two minutes. Actually, the Finance Officer gave the two files to us to use and took a coffee break. When he returned, he was amazed that it was done. You are done?, is the first question that came from his mouth in total disbelief, when we gave him the initial reconciliation for his review. Initial because, he still needs to review the reconciling items.

The reconciliations produced a two column AICPA format bank reconciliation from unadjusted to adjusted book and bank balances. There are about 10 reconciling items that they need to review and verify. It took them almost an hour to resolve the reconciling items.

Among others, the reconciling items were comprised of overstated checks, understated checks, unrecorded checks; unrecorded interest and bank charges- all these reconciling items were fully documented in the EzyRecon working papers. Oh, there are also, some typing errors when they transferred the first 6 months bank statement into Excel- the bank can allow them to download only 6 months of prior transactions.

So, in less than 2 hours a final accurate bank reconciliation was produced for the external auditors. The final reconciliation reflects the accurate outstanding checks and deposit-in-transit as of December 31, 2005.

The Finance Officer looks good to the President for delivering what was needed from his department. Also, we look good to the client for delivering what we said and promised we can do.

I asked the client to blog his experience with us. You may see his actual experience on your next visit to this site.

A year work of bank reconciliation all done in less than half a day's time. What is your story? Maybe you can blog it here.

You can download our software for a free 60 day trial of at www.ezyrecon.com


Conrad

Comments

Dante said…
Yes, indeed, my client was able to do her one year bank reconciliation in less than 5 mins.

At first, there were lots of reconciling items that's seem unusual but all of these was brought about by erroneous data encoding from the bank statements and book data.

My client has no computerized accounting program in place and that their operating bank account has no internet online data download. Hence, she encoded the bank statement entries into excel and so with the book data.

After making the necessary corrections on the bank and book files, the bank reconciliation, which took them in less than 5 minutes, were almost perfect.

Needless to say, they were stunned to see for themselves that ezyrecon was able to reconcile their one year cash data in less than 5 mins with less manual intervention.

It could have been a different story had the bank and book files were downloaded direct from the bank server and book files have been converted using a computerized program conversion utility, respectively.

At any rate, they were satisfied with the results.

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