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Account Reconciliation Services in Dubai, UAE

CDA offers professional account reconciliation services in Dubai, UAE for small and medium enterprises, corporate houses, and large organizations. Through our expert account reconciliation services, we make sure that the actual account balance matches the corresponding bank statement, preventing fraudulence and legal issues to help our clients focus fully on their business goals. Outsourcing account reconciliation services to a financial expert like CDA not just ascertain the accuracy of your company's financial statements but also ensures compliance with regulatory/ statutory requirements.

account reconciliation services dubai

Why Accounts Reconciliation?

The accounts reconciliation is the process of verifying an organization’s financial records in order to identify any kind of deficiencies and if so reconcile them for better financial planning in future. Effective accounts reconciliation procedure ensures two sets of records or the balances of two accounts agree with each other. A company can ensure that the money leaving an account matches the actual money spent by following the reconciliation process.

Be it SMEs or MNCs in UAE, the possibility of legal issues, maintaining the confidentiality of the vital data and the chances of fraud and corruption are high. CDA experts in Dubai, UAE offer the best accounts reconciliation services in this regard to eliminate and eradicate these issues. The range of accounts reconciliation services including the following:

1. Bank Statement Reconciliation Service

Companies that are having a huge number of transactions, either online or cash/cheque deposits and withdrawals, etc., it will be a time-consuming work for the accounts department within the companies. In such cases outsourcing the bank reconciliation process will be appropriate for them.

To proceed with the reconciliation of a bank statement, CDA experts relate the given bank account balance with the general ledger of the business.

The Steps to Reconcile a Bank Statement

  • Equate the Deposits
  • Adjust the Bank Statements
  • Adjust the Cash Account
  • Equate the Balances

Once the balances are equal, CDA experts help companies to prepare journal entries for the adjustments to the balance per books. Timely reconciliation of bank accounts is very vital to ensure proper control and sufficient balance of funds in the company.

Advantages of bank reconciliation process:

  • Helps in year-end closing of accounts
  • Helps the Receivable departments to send updated SOA on time
  • Helps generate more accurate and up to date balance of payables and receivables of the business
  • Spots mistakes such as double payments, missed payments, calculation errors, etc.
  • Detects deceitful transactions and theft
  • Improves cash flow

2. Vendor Reconciliation Service

CDA offers Vendor Reconciliation Service to a company when the reconciliation between the supplier ledger and the accounts statements from the supplier becomes more difficult. It happens if the number of transactions is high and the records like discounts, rebate, returns, etc. are involved in the contract.

Advantages of reconciliation of vendor payments:

  • Circumvents the Trouble of the later supplies
  • Avert Reimbursing the wrong vendor
  • Recognize missed payments from your vendor
  • Aids in avoiding over-payment
  • Create a relationship between dignified trade and veracity
  • Ensures all the suppliers accounts are credited consistently with the invoices received for the supplies made for.
  • Ensures purchase returns are properly debited in the suppliers account
  • Ensures whether discounts/rebates, etc. received from the suppliers or as per the agreed terms with them were correctly reflected as debits/ charge to their accounts
  • Manages the credit policy that results in effective cash flow management

Materials Required:

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

3. Customer Reconciliation Service

CDA offers Customer Reconciliation Service to a company when the number of transactions made by the company is more and additional considerations such as discounts, rebates, returns, etc. are involved in the contract.

Advantage of customer reconciliation service:

  • Ensures that all the customers’ accounts are invariably debited with the invoices issued for the supplies made to them.
  • Ensures that all sales returns are properly credited in the customers’ account
  • Confirms whether discounts, rebates, etc. paid to the customers or as per the agreed terms with them were correctly replicated as credits to their accounts
  • Effective collection strategy by sending updated SOA
  • Avoids conflicts between the company & customers
  • Easiness of closing monthly accounts

Materials Required:

  • Invoices issued to customers
  • Ledger statement of the customers
  • Debit Notes received from them
  • Credit Notes delivered to them
  • Replica of Contracts/Agreements entered by the management of the company with customers.
  • Replica of bank statements to verify the payments received from customers.
  • Statement of accounts /Replica of ledger account from customers.

4. Inter-company Reconciliation Service

The inter-company transactions are transactions between the Head Office and its branches or between the sister concerns. In some companies, the recording of transactions is not taking place in time for one or the other reason. The inconsistency between the accounts maybe because of the non-availability accountants, inappropriate organization between related parties, exchange rate variation, postponement in transportation, etc. CDA experts analyse the causes and reconcile the process.

Documents required:

  • Replica of Contracts/Agreements recorded by the company with its sister concerns
  • Report of accounts from the related party, sister concerns or Head Office or branch
  • Report of accounts from company Books of Account
  • Information such as invoices, debit notes, credit notes, payment details, etc.

5. Prepaid Reconciliation Service

The prepaid expenses are expenses such as insurance, rent, interest and taxes, and utilities like electricity, gas, water, sewerage, etc.that are paid by a company in advance.

CDA experts will analyze the whole process and address the issue. The prepaid expense is carried on the balance sheet of a company as a current asset until it is consumed.

Prepaid expenses are initially recorded on the balance sheet, not on the income statement. Once the benefit of the prepaid expense is realized or incurred, it is documented on the income statement.

As per the Generally Accepted Accounting Principles (GAAP), accrual accounting requires that expenses should be recorded when incurred. So, prepaid expenses aren’t entered on the income statement when paid, because they are yet to be incurred.

Benefits of Proper Reconciliation and Closing of Accounts

  • Helpful for External Auditing- Account reconciliation ensures that accounts in the general ledger are constant, precise, and comprehensive. This ensures the External Auditing process smooth and authentic.
  • Accuracy in Financial Statement- Reconciliation ensures error-free financial report as we prepare accurate income statements, balance sheets, and the statements of cash flows.
  • Helpful for Decision making- Reconciliation helps a company to understand its running condition and helps the owner take strategic decisions for its further growth.
  • Authenticity of documents in case of legal cases- Since the experts prepare error-free documents, it can be submitted with authenticity in case of any legal issue.
    • Reconciliation minimizes the risk of in-house accounts team as documents are false proof and authentic, and it saves their time.
    • Reconciliation helps in preparation of effective cash flow because it helps the collection on time.

CDA Accounts Reconciliation Services in Dubai

CDA has a team of accounts reconciliation experts who conducts a detailed analysis of your financial transactions and accounting records with a view to uncovering discrepancies, ensuring a better financial prospect for your company. Our pack of excellent and skilled Accountants have been offering Reconciliation services to the clients in the UAE for the last so many years successfully. Our clients are well-satisfied and gain the momentum to gallop in their business.

CDA also offers various services to its clients, like CFO services, Outsourced Accounting Services, Organizational Restructure, TAX or VAT Consultant Services, Implementation of Accounting SoftWare Services, and Due Diligence Services to the business world.

Any concerns on accounts reconciliation services in Dubai or UAE? Feel free to contact us. Our experts are ready to assist you. We offer one-hour free consultation.

Frequently Asked Questions [FAQ]

1. What is account reconciliation?

Reconciliation is a comparison of two sets of records to make sure that the cash going out of the checking account matches invoices. In simple words, it is the investigation and reviewing of the financial statements and supporting documents. It helps to close the books of accounts and enhance the credibility of internal financial statements.

2. What are the services included in reconciliation?

Account reconciliation services include comparing transactions recorded internally against external activities such as:

  • Bank Statement Reconciliation
  • Suppliers Ledger Reconciliation/Vendor Payments Reconciliation
  • Customers Ledger Reconciliation
  • Intercompany Reconciliations

3. What are the steps included in supplier statement reconciliation?

Step 1: Review the Opening Balance

The start line for the supplier statement reconciliation is to agree the opening balance shown on the supplier statement with the opening balance on the account’s payable ledger account for the supplier.

Step 2: Review the Period Entries

All the things which appear on both the supplier statement and on the supplier’s account within the accounts payable ledger should be marked with a tick mark. These things can now be eliminated from the reconciliation process.

Step 3: Allocate Credit Notes and Payments

All credit notes and payments should be allocated against invoices in suppliers’ system.

Step 4: Differences

All remaining items not eliminated in steps 1 to 3 above represent either item on the supplier statement or not within the account’s payables ledger. 

4. What are the reasons for mismatch in the invoices and bank statements?

There are several reasons that invoices show amounts that don't match bank statements or accounting records:

  • An invoice could also be partially paid
  • Discounts could also be given for early payment
  • Bank charges could also be deducted, for instance, if there's a foreign currency transaction
  • Delivery of products could also be delayed, which delays payment
  • Timing of payments and deposits may fall outside the scope of your reconciliation period
  • Missing or duplicate invoices

5. What is debtors reconciliation?

Debtor reconciliation is that the reconciliation of balances between debtors accounts and customers account. Accounts Receivables ageing reports are used for reconciliations, by matching client’s ledger in Company books of Accounts with Companies Ledger in Clients Books of Accounts. Its correctness is monitored and if there's any difference it will be intimated to the management.

6. Why is bank reconciliation important in UAE?

In UAE Bank confirmation and bank reconciliation report is one of the mandatory requirements for External audit. Reconciling the accounts helps to determine if accounting changes are needed. It helps to ensure:

  • The company's cash records are accurate
  • The financial statements are free from errors and fraud
  • A well-organised documentation system to track the transactions
  • Better assistance to spot inefficiencies in your accounting system

7. What are the advantages of outsourcing bank reconciliation statement?

Bank reconciliation is the process of verifying an organization’s financial records and transactions so as to detect discrepancies. So outsourcing bank reconciliation with an expert team is important to spot timing differences and discrepancies between the financial records to reinforce income management. We provide expert services with professional advice and presentation of quality information

  • A well-encrypted data security measures to ensure confidentiality
  • Improved financial control for due diligence of monetary statements
  • The installation and use of reconciliation software help to reduce errors
  • Reduction in administrative and accounting expenses
  • Compliance with regulatory legislation

8. What are Bank Errors?

Bank errors are the incorrect transactions recorded by the bank. The common bank errors are:

  • Error in the reference number
  • Account number error
  • Invalid or missing bank codes
  • Duplicate entries, Transaction error, Deposit fail
  • Badly-formatted data

9. What are the reasons for the difference between bank statement and bank ledger in companies books of accounts?

The common reasons for the differences are:

  • Non-recording of bank charges
  • The cheques issued but not cleared from the bank yet
  • The cheques received but not deposited in the bank for clearance

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