Archives: Countly Learning
Preparation of Bank Reconciliation Statement
Bank reconciliation may not be glamorous, but it is vital. Anyone in business must know how to prepare a bank reconciliation statement (BRS). The BRS ensures that the cash balance in your books aligns with what the bank says you have. If there is a discrepancy, it could be due to timing differences, errors, or […]
Preparation of Amended Cash Book
A statement that demonstrates every item of difference among the cashbook and bank record column and the bank balance represented in the pass book on a specific date and for a specific timeframe is called the bank reconciliation statement. This statement is formed on a certain date for the reconciliation of the bank balance of […]
Automated Bank Reconciliation
Bank reconciliation—it’s one of those tasks everyone in finance loves to hate. Slow, boring, and prone to mistakes all the time. But what if you could make this “necessary evil” into a process that works better and faster? Here comes automation. With automated bank balance, things are now faster, more accurate, and a lot less […]
What is an outstanding check
In a bank reconciliation, an outstanding check is the check that has been recorded in the company’s book but yet to be determined to be cleared by the bank. Basically, the cash balance got reduced, but the bank is not subtracted any amount from the account balance of the account holder. This disparity happens due […]
Comparing Bank Statement and Cash Book
For any business, keeping the numbers straight is non-negotiable. And one of the most basic—but absolutely essential—tasks in accounting is comparing the bank statement with the cash book. These two records should ideally match, but in reality, they often don’t. Checking them against each other, a process known as bank reconciliation, is crucial. It helps […]
Bank Reconciliation Discrepancies: Common Causes and Steps for Identification
Bank reconciliation is one of the major tasks that looks boring for most of us. Discrepancies occur in the event of not matching the transactions between bank statements and the cash book of the company. Comparing both of these statements by regular reconciliation will avoid the problems at the time of audit and tax filing. […]
Adjusting Entries in Bank Reconciliation
While handling finances, matching the internal records with the bank’s records is necessary, and businesses are required to take important steps. Bank reconciliation plays a huge part for the sake of maintaining financial exactness and accountability. Adjusting entries plays a noteworthy role mostly for businesses functioning in India because of the specific financial regulations and […]
Days Sales Outstanding (DSO)
Days Sales Outstanding (DSO) is an important financial metric that shows how efficiently the company manages its accounts receivable. By predicting the average number of days any company takes for the collection of payments from the customer after sale, DSO delivers the signal for steady cash flow. Enhancing DSO is crucial for the prosperity and […]
All you need to know about Bank Statements in India
Bank Statement is an important documentation tool in personal finance where the account holder is able to monitor their transactions, prepare his/her budget and also justify his/her financial activities in case of any doubt. Bank statements are necessary documents for any individual who deals with money on behalf of him/her or a business entity. What […]
Cash Book
Business use to rely upon the tool that is used to record all cash transactions, and its name is Cashbook. It operates as both a journal and a ledger for cash inflows and outflows, providing a transparent, well-structured view of the company’s cash situation. To ensure accuracy in cash regulation and financial monitoring, different types […]
Bank Reconciliation
Bank reconciliation helps you match up your records with what the bank shows. It’s an easy but important process. It’s not just for big businesses; people and small businesses should do it all the time. This process is even more important in India, where there are many banking systems and people use cash, checks, and […]
Collection Effectiveness Index (CEI) in India: The Real Deal for Managing Your Receivables
Cash flow. You hear it everywhere, but in business, it’s what keeps the machine running. And when sales happen on credit—like they do in most Indian businesses—it’s all about making sure that money actually shows up. This is where Collection Effectiveness Index (CEI) steps in. You might’ve heard of DSO (Days Sales Outstanding), but trust […]
Top Priority KPI’s for Accounts Receivable
Managing accounts receivable is crucial for any business’s cash flow. Key performance indicators (KPIs) like Days Sales Outstanding (DSO), Accounts Receivable Turnover Ratio (ART), and Bad Debt to Sales Ratio give you the real picture of your collection game. By keeping tabs on these numbers, you can spot problems, cut down on errors, and boost […]
Best Practices for Reducing Payable Aging
In India, impactful cash flow management is important because nearly 60% of Indian SME’s face liquidity concerns because of postponed payments. A study by CRISIL disclosed that Indian companies took an average of 67 days to clear supplier invoices. Managing accounts payable aging is mandatory to enhance financial health. What is Accounts Payable Aging? Accounts […]
The Use of Technology and Automation in Bills Aging
In today’s competitive business environment, a company’s ability to manage its accounts receivable is crucial. Everything begins to fall apart if you don’t maintain the flow of money. Bills aging, a system that groups past-due invoices according to the length of time they have been past due, is one of the finest methods to keep […]