Why should I reconcile my bank statement?

Any good bookkeeper will tell you that ideally you should reconcile your bank statement on a monthly basis.  Too often, people check their bank balance and don’t realise it’s not an accurate picture of their financial position.  Without bank reconciliation, it’s much harder to know how much cash is available in your account. So by comparing your list of transactions to the bank statement, you can make sure that your records and the bank agree on the transactions that have been processed. 

And let’s not forget, even your Bank can make mistakes, so by reconciling your statement, you can catch any errors quickly and get them sorted!


Small Business Accounting

Never underestimate the requirement for accurate financial statements! 

An example of these are monthly income statements, balance sheets, and cash-flow statements which are all needed when filing your taxes.  These statements will also help you to assess the financial health of your company and to see where you can create improvements. 

A great investment to help you in this area is to purchase accounting software and of course, hiring the skills of a professional bookkeeper!  There’s no point having software to record your transactions if you’re not sure which side of the equation refers to debits or credits!!