Reconciliation services in Dubai

Reconciliation is the process of comparing transactions and activities to supporting documentation. Further, reconciliation involves resolving any discrepancies that may have been discovered.

What is the purpose of reconciliation?

The process of reconciliation ensures the accuracy and validity of financial information. Also, a proper reconciliation process ensures that unauthorized changes have not occurred to transactions during processing.

Accuracy of activity

A sound internal control system provides a mechanism to verify that transactions and activity are for the correct purpose and amount, and allowable.

For each type of activity, document the specific information from source documents that will be compared to the appropriate report. This is to help to ensure that transactions are valid and that they are correct in purpose. Make sure that transactions have been appropriately authorized. Especially if the documents are paper-based, check for any changes that may have occurred between approval and the transaction being processed. Ensure that all transactions are valid.

Error correction

Errors and discrepancies, intentional or unintentional, should be detected, investigated, and resolved in a timely fashion.

Verify the accuracy of transactions promptly. Make sure that source documents are processed and posted promptly by the processing department. If you have any questions or concerns about your account, please contact the appropriate central office or processing department. Develop a plan to research and correct errors or discrepancies in each type of transaction or activity. Communicate these processes and procedures with the appropriate staff.

Matching to the source

The oversight of any transaction is strengthened by the process of matching source documentation of the transaction to the appropriate reporting documentation or reporting tool.

Documenting the process and completion

Reconciliation processes are most effective when they are consistent and thorough. Employees involved in the reconciliation process should be knowledgeable and clear on their responsibilities and expectations. It should be clear to an external reviewer when reconciliation has been completed.

Make sure that you are following through with the reconciliation processes. Changing the way reconciliations are done often leads to inaccuracies and potential fraud. The reconciliation should be documented to verify that a review has been performed. The reconciliation process and procedures should be documented and communicated to all involved. Document the steps in the process, who performs each step, and the expectations regarding timeliness. Also, create a mechanism for providing proof that all activity has been reviewed and reconciled and a procedure for error correction.