Reconciling your bank account is a simple yet often overlooked part of one’s accounting system. Whether you are using a check register or sophisticated accounting system it’s wise to reconcile your bank account to your register or accounting program. This can be done daily, monthly, quarterly or annually. Typically this is a monthly task.
Why It’s Important
- Know what items haven’t cleared the bank such as deposits or checks in transit
- Identify problems, errors and/or duplicates
- Catch fraud or unauthorized transactions
- Confidence in your cash balance for cash flow
- Ensure proper documentation to support an audit
- Save time and money when working with your accountant
Bank reconciliations are often overlooked and takes very little time to complete once learned. Also, once you learn the technique of reconciling your bank account you can apply this technique to other account balances in your accounting systems such as credit cards or liability accounts. If you have any questions regarding reconciling, please reach out to us! We can help! Contact us HERE.