Accurately recording your numbers will significantly increase your business’s likelihood of success. But how do you know your numbers are truly accurate? Reconciling.
Is your bank account reconciled? Read on to find out why this 5-minute task is a necessary step to ensuring the financial health of your business.
Bank Reconciliation is the process of comparing the cash balance listed on a business’s balance sheet to the business’s bank statement(s). But, why is it important?
- Ensures all income and expense amounts are entered correctly
- Ensures all transactions that occurred in your bank account are recorded in your accounting software.
- Ensures all transactions recorded in your accounting software have been processed by the bank.
- Identifies duplicate entries
- Identifies fraudulent transactions
- Identifies issues that need to be fixed or looked at closer.
Most importantly, the end result is an accurate picture to monitor cash flow and accurate numbers to use when paying taxes. No one wants to pay taxes on income that has been recorded twice, but we have seen it happen!
Performing a bank reconciliation each month is critical to ensuring the financial health of your business. At Faith Resolutions, we are committed to accurately recording all of your business transactions and providing you with the peace of mind you need. Schedule a call with us today to learn more about how we can be of service to you!
Download our free printable BANK RECONCILIATION CHECKLIST here!