![]() ![]() How often should you reconcile bank accounts? While it’s highly likely that they are, issues do occur, and it never hurts to double check. Many business owners simply assume the numbers from their bank and accounting software are correct. These issues can crop up in even the most thorough businessesĭevelop accurate reporting for tax purposesĪvoid bank fees incurred as a result of overdrafts and insufficient funds. Maintain an accurate measure of how much money your business has on hand at any given timeĭetect errors, including double payments, data entry mistakes, and incorrect math. What’s the purpose of bank account reconciliation?īank account reconciliation is important for a variety of reasons. Other forms of reconciliation that you might be familiar with include vendor reconciliation and customer reconciliation. Modern accounting software has largely made these difficulties a thing of the past, as many of the steps are now automated.īank reconciliation is the most common type of reconciliation performed by most businesses. Reconciliation in banking used to be a tedious and time-consuming manual task. Your accounts are considered reconciled if they provide the same balance on any given date. What is bank reconciliation?īank reconciliation or, more accurately, bank statement reconciliations, in accounting is the process of ensuring that your accounting software and bank account match. In this article, we’ll explore the bank reconciliation process in detail and help you get started today. That’s where bank reconciliation comes in.Īn important process that helps ensure accurate records and keeps your accounts up to date, performing bank reconciliations will also give you a chance to monitor your accounts for fraud and other irregularities. You’ll also know that this isn’t always an easy task – in the daily hustle and bustle, it’s easy for transactions to get lost and numbers to get entered incorrectly. As a business owner, you know the importance of keeping accurate records.
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