Bank Reconciliation Software Key Terms

Know the key terms used in bank reconciliation software
By B. Lumadue Bank reconciliation software works by taking data from bank statements and comparing it to a company's general ledger. Items are matched between the two sets of data to show which checks and transactions have cleared, and to find entries that are not reconciled. To be effective, bank reconciliation software must be compatible with your existing financial and general ledger software, comply with auditing and government regulations and provide adequate reporting and security. Get to know the key terms used in bank reconciliation software to find the right application for your needs.
 

SAS 70 standards

Statement on Auditing Standards (SAS) No. 70, Service Organizations, is an auditing standard that was developed by the American Institute of Certified Public Accountants. SAS 70 standards are used to establish control objectives and control activities for information technology, including data storage and reconciliation activities.
Try: See SAS70 for complete details about SAS 70 standards.

Sarbanes-Oxley compliance

The Sarbanes-Oxley Act of 2002 sets extensive reporting and recordkeeping requirements on all publicly-traded companies. Bank reconciliation software requires extensive reporting and security to be Sarbanes-Oxley compliant.
Try: See StatSoft for information about the Sarbanes-Oxley Act and compliance details.

Hosted

Hosted software resides on a remote server and is accessed on demand over the Internet. One of the benefits of hosted software is that a company does not have to purchase and maintain software and hardware to run the program.
Try: View the Trintech Technologies website for information about its hosted bank reconciliation software.

Retail

Retail bank reconciliation software is helpful when there is more than one store or a chain of stores, since it tracks deposits and accounts by each store. It allows managers at all levels to check data for each store.
Try: See RedPrairie for an explanation of its retail bank reconciliation software.

Matching rules

Bank reconciliation software uses rules to match transactions with ledger entries. It may use the check number, monetary amount, other variables or a combination of factors.
Try: See Treasury Software for a look at how its software program matches transactions to ledger items.

Bank reconciliation journal

A bank reconciliation journal lists items that are included on a bank statement, but not recorded in the general ledger. The adjustments include the bank service charges, fees and earned interest.
Try: Check out Scribd for an example of a bank reconciliation journal.