Do you check the accuracy of your giro account and cash balance?

The exact giro account balance depends on how up to date the delivery and posting of bank statements is. So, how do you know whether your accountant is working in real time, i.e. whether the documentation is being posted on a daily basis? Ask for the giro account balance, and if it matches the balance shown on the latest bank statement, you can generally rely on the current balance as well as on the other reports you request from your accountant — the overview of customer receivables, the overview of outstanding liabilities, etc. However, even so, it often happens in practice that at year-end, during bank confirmations, the balance matches but the turnover does not, which means that a transaction of the same amount — if it was both an inflow and an outflow — may not have been recorded, and it can represent a materially significant amount that affects the result and the calculation of other taxes as well. For that reason, bank confirmations are also important. The giro account balance must be monitored not only because of current liquidity, but also because of future plans, investments, liabilities, loan obligations, and so on. Based on the monitoring of inflows and outflows, you can adopt various payment maturity policies that help secure your liquidity, or know when to initiate forced collection for outstanding receivables. Usually the result on assets is not closely tied to liquidity, because although you have recorded revenue that has not yet been collected, in the short term a company can run into operating problems due to fixed costs that must be settled on a monthly basis. By monitoring the giro account balance on a daily basis, you can also keep track of the way banks calculate transaction fees. If your company has a high turnover through the giro account, fee costs can be considerable, and the calculations differ between banks, among other things based on the time of day the transaction is performed. The exact cash register balance, keeping a cash register journal, daily depositing of takings, and the existence of a decision on the cash register maximum are also very important items that you, as a company director, must be familiar with.

Do you check the accuracy of your giro account and cash register balance?

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