Reclassification is a financial operation involving the transfer of funds from one account to another. It can be performed by a businessman to settle with a counterparty or by a bank to post a payment to a customer’s account.
What is a reclassification? Definition of the term
Reclassification is one form of accounting for cash. A reclassification means the transfer of cash from one account to another. Reclassification is often used when cash must be moved from one bank account to another. A reclassification is also used when cash must be moved from one type of account to another, such as from a savings account to a current account. Reclassification is often used when cash must be moved from one currency to another.
For what purpose is a reclassification performed?
A reclassification is an action that is intended to change the timing of an economic operation. A reclassification is often performed when an economic operation has been performed in one month and the date of its performance is in another month. The purpose of performing a reclassification is so that the economic operation is recorded in the correct month in the accounting books. This provides a complete picture of the current financial situation of the enterprise.
Reclassification – how to do it?
Reconciliation can be done by yourself or have it done by a bank. If an entrepreneur wants to perform a reclassification on his own, he must have an account with the bank where he has a business account. To perform a rebooking, one should:
- go to the bank’s website,
- log in to the online banking service,
- go to the “transfers” section,
- fill out the transfer form: give the name of the recipient, the account number, the amount of the transfer and the date of the transfer,
- approve the transfer.
If, on the other hand, the entrepreneur decides to have the bank repost the transfer, then he must fill out the appropriate form and deliver it to the bank. The form should include:
- the number of the account from which the operation is to be made,
- the number of the account to which the operation is to be made,
- the amount of the transfer,
- the date on which the transfer was made.
After completing the form, it should be delivered to the bank in paper or electronic form.
