saoussen5765
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Financials are a big part of any business organization. It is important to carry out regular financial checks to be sure the business is in a good direction. One of those financial checks is to always compare the ledger balance with the bank statement. Why is it necessary to always compare ledger with bank statements?
1) To detect errors: Sometimes, accounting errors can occur. It could be in the form of unreported deposits or withdrawals. Comparing the two balances would reveal the discrepancy and allow for such errors to be traced to know the true financial position of the company.
2) To detect fraud: Sometimes, the accounting staff can try to manipulate the ledger balance after a financial fraud by either taking money or not remitting everything. The bank statement would reveal the inconsistency with the ledger balance and it can be traced before it gets too long and untraceable.
1) To detect errors: Sometimes, accounting errors can occur. It could be in the form of unreported deposits or withdrawals. Comparing the two balances would reveal the discrepancy and allow for such errors to be traced to know the true financial position of the company.
2) To detect fraud: Sometimes, the accounting staff can try to manipulate the ledger balance after a financial fraud by either taking money or not remitting everything. The bank statement would reveal the inconsistency with the ledger balance and it can be traced before it gets too long and untraceable.