#You'll know that this 'update' is bogus information.

[sandyc100]

STEPS FOR BANK RECONCILIATION

Small company owners are increasingly using accounting tools, but companies still need to routinely compare bank statements to individual records. This process, called bank reconciliation, ensures that the company's records are accurate and helps the organization identify any anomalies, errors, or fraudulent activities. In this article, we'll describe bank reconciliation, go over how to do it, talk about some common problems that come up during record reconciliation, and show an illustration of bank reconciliation in action.

How does bank reconciliation work? Comparing a company's records to its bank accounts to make sure all activities are recorded is known as bank reconciliation. The method can be used to maintain accurate records, stop bogus payments, and handle any other disputes or complaints. The majority of businesses perform bank reconciliation, or bank rec, at the conclusion of each month, though the frequency is primarily determined by the organization's size and number of transactions. For instance, some larger companies require daily data balancing.

Bank reconciliation should be done on a frequent basis regardless of regularity. Although some businesses still maintain their records by writing, accounting software is available to make the bank balance process simpler and more effective. The majority of these systems combine the business's financial accounts, providing access to all information and documents in one location.

How Should a Financial Balance Be Done?

Following are the steps involved in finishing bank reconciliation:

1] Get financial documents. 2] Compile the documents of your business. 3] Choose a place of departure. 4] Review the deposits and withdrawals from your accounts. 5] Check your books for income and expenses. 6] Alter the bank records. 7] Make adjustments to the financial position. 8] Compare the total amounts.

1] Gather financial documents You will require access to a summary of your activities in order to reconcile your data. Online banking, bank records, or enabling your bank to share data with your bookkeeping software are all ways to obtain this information.

2] Compile all of your business documents. You'll also need access to the records or inventory of your company. This data is frequently kept in a bookkeeping application, a journal, or a spreadsheet.

3] Decide where to start. If you've just recently adjusted your accounts, you'll know where to start. If you're unsure, attempt to remember the last time the amounts in your books and bank accounts tallied. Then, proceed from there.

4] Go over each transfer and transaction from your bank. Make sure that your bank account reconciliation services accurately depicts all of your payments and withdrawals. You must fill in the gaps if anything is lacking.

5] Review the revenue and outgoings in your accounts. Verify that every transaction is accurately recorded by comparing your records to your bank accounts. Identify the cause of any mismatched items. It's possible that a payment hasn't been completed yet or that you neglected to pay anything in cash.

6] Correct the financial accounts. A company's action may not always be correctly reflected in a bank statement. The main causes include overdue payments, financial issues, and deposits in route. Change the bank account as necessary for any purpose.

7] Balance the bank account. Additionally, you'll need to update your documents to properly reflect all business activities. This will be achieved by making sure that all expenses and payments are accurately recorded in the firm's cash account.

8] Compare the total amounts. The reconciliation procedure should be finished once you've compared the records, made any necessary adjustments, and double-checked that the end amounts are identical. You will need to redo the procedure to identify the issue if they are still uneven.

There are several causes to conduct a bank reconciliation:- Frequent bank balancing has a number of advantages. Here are a few of these instances:

1] Identifying fraud and suspect activities. 2] Recording bank transfers, fines, and costs in the bookkeeping software for the business. 3] Maintaining thorough documents of the company's payables and debts. 4] The ability to spot issues like double-ups or lost funds

Typical problems encountered during bank accounting Finding possible problems is among the most important reasons to conduct bank reconciliation. The following are some of the most frequent issues you'll encounter when conducting a bank reconciliation:

Afterwards-deposited checks that are returned: A check may not be deposited by the bank in a number of situations. Typically, this occurs as a result of the check being made on an overseas bank account. To reverse the item that represents the unsuccessful payment, you must credit the cash account, decrease the amount, and increase the debt in the accounts payable account.

Bank-issued checks that have been voided and cleared: If a check has been voided and cleared by the bank for a significant amount of time, it should be replaced. In exceptional circumstances, the payee might try to redeem the initial check. They should decline to pay the check if the bank has cancelled it. You will need to adjust both the cash and checking accounts to justify the payment if the bank was not informed of the cancelled check.

Without informing the bank of a rejected check, you run the chance of receiving two payments.

Double payment: You run the chance of receiving two payments if you don't let the bank know about a rejected check. In the event that the recipient cashes another check, you must demand compensation from them.

[latinbossboy9]

to File a Complaint With the Better Business Bureau

How the BBB Can Help You Resolve a Dispute With a Company



•••

BY 

RANDY DUERMYER

 

Updated on April 15, 2020

The best way to avoid work-at-home and home business scams is knowing the tricks and deceptions that illicit businesses use. There are resources to help if you think you might have been scammed or you're having a problem with a company. One good option is to file a complaint with the Better Business Bureau (BBB).

The BBB helps consumers settle disputes related to sales, contracts, customer service, warranties, billings, and refunds every year. It accepts complaints even if the company that's harmed you doesn't belong to the Better Business Bureau.

What Is the Better Business Bureau?

The Better Business Bureau is a private organization with a stated vision to provide "an ethical marketplace where buyers and sellers can trust each other." Its mission is "to be the leader in advancing marketplace trust." The intent is for consumers to have an unbiased resource to guide them.1

Membership in the BBB is voluntary, and businesses pay fees for "accreditation" with the organization based on the number of full-time equivalent employees (FTEs) they have. Fees range from $500 annually for one to six FTEs, up to $11,787 a year for businesses with 2,000 or more FTEs.2

Accredited businesses must meet a set of ethical standards set by the BBB, which then rates companies based on their record on a scale of A+ to F. The BBB maintains profiles of more than 5.4 million companies as of 2020.3

The BBB previously used a numerical scale. 

Each BBB office maintains files on businesses headquartered in its service area. Every office in the U.S. and Canada posts its reliability reports on the organization's web at BBB online.

When You File Complaint With the BBB

The Better Business Bureau accepts complaints involving all types of businesses—online, offline, BBB-accredited businesses, and non-BBB-accredited businesses. It also accepts complaints against charities and non-profits. 

You're creating a record of your grievance when you file a complaint, so other consumers will know if a business has had previous complaints. They can then make a more informed decision as to whether to trust that business. The BBB tracks the responses from companies so you can use it as a tool to find out if a company has responded to solve the problem.

Just because a company has a record of BBB complaints, this doesn't necessarily mean it's bogus. It can be a red flag, however, that might prevent someone else from jumping in and getting scammed or having a bad experience. The key is to determine the nature of the complaint and the business' response. 

What the BBB Won't Do

The BBB isn't a government or law enforcement agency, so it can't enforce the law or force a company to take action.

The BBB does not take complaints regarding matters that are in litigation, or those that involve discrimination or employee/employer disputes. Nor does it accept complaints against government agencies or protests against existing or pending laws.4

Tips on Filing a Complaint

The BBB won't process anonymous complaints, so you'll be required to provide your contact information in any complaint you file with them.

Additionally, BBB complaints must include the company's name and enough information to forward the complaint to the company. Finally, the complaint must involve a consumer-to-business or business-to-business transaction that relates to the advertisement or sale of a product or service.

How to Report Work-at-Home Scams to the BBB

The BBB allows you to file a complaint online with just a few easy steps:

Visit the BBB online

Search for the company's name, and specifically search for the location where you did business if it's a nationwide business

Click on the company you want to file the complaint against from the list of results 

Click the link that says "File a Complaint" on the company profile

You'll be given three options: 1) "File a complaint" 2) "File a review" or 3) "File a scam report"

Choose the "file a complaint" option if you're looking for a refund or another resolution so the BBB can mediate on your behalf. You can file a review and/or scam report if you don't have a good resolution to your complaint.

What to Expect After You File a Complaint

You'll receive an email confirmation after you've successfully filed your complaint with the BBB. It should include information on which BBB office is handling your complaint and provide a link to a PDF file of your complaint for your review. You might receive direct contact from a Dispute Resolution Specialist, who will work with you until the matter is resolved or until the BBB reaches a dead end.

Getting Your Money Back

Having the BBB mediate your complaint can sometimes result in a refund, but the BBB isn't able to force companies to fix the dispute. There are a few other places where you can report a problem that might or might not result in getting your money back.

The best way to get your money back if the company doesn't refund you through its own policy is to file a fraud complaint through your bank or credit card company.

It's always better to do your due diligence and research companies before doing business with them. The Better Business Bureau is a great resource to learn about companies, discover if there are any complaints, and to get help resolving problems.

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