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A bank reconciliation is when you compare your records of transactions to your bank statement. This helps you find any discrepancies between the two, which can be caused by errors, fraudulent activity, or simply differences in timing. reconciling your accounts on a regular basis can help you keep track of your finances and prevent problems down the road. Here's how to do it
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1. When you’re running your own small business, keeping track of everything can be a difficult task, especially when it comes to your finances. 2. That’s why every small business owner should know how to do bank reconciliations, as they are one of the most important tools in understanding and managing your finances.
What is a bank reconciliation? 1. A bank reconciliation is the process of matching the balances in your company's accounting records with the corresponding information from your bank statements.
2. This ensures that your books are accurate and up-to-date. In order to perform a bank reconciliation, you'll need the following: 1)Your financial institution statement or passbook 2) business deposit slips
3) an account register or day book 4) account ledgers 5) balancing items list.
Why do you need a bank reconciliation? 1. A bank reconciliation is an important part of bookkeeping for small business. 2. It ensures that the money in your bank account agrees with the records in your accounting system.
Who should be responsible for doing the bank reconciliations? 1. As the small business owner, you should be responsible for reconciling your business bank account each month.
2. This is important because it ensures that your books are accurate and up-to-date. 3. Plus, it can help you catch errors and prevent fraud. 4. It's best to do this as soon as possible after the transaction date - when you still have all of your records on hand.
5. If you don't reconcile often enough, or if you make mistakes in reconciliation, then your bookkeeping system won't accurately reflect how much money is coming in or going out of your company.
How often should your company do its bank reconciliations? 1. Your company should reconcile its bank account at least once a month. 2. This will help ensure that your books are accurate and up-to-date, and will also help you catch any errors or fraudulent activity early on.
3. It’s important to get the process down pat before reconciling so it’s easier to spot potential discrepancies during the reconciliation process.
Contact us Call us: 1300 049 534 Website: https://reliablebookkeepingservices.com.au/ Email: enquiry@reliablebookkeepingservices.com.au
