Top Tips for Bank Reconciliation and Bookkeeping for Small Business

1. Top Tips for Bank Reconciliation and Bookkeeping for Small Business

2. Top Tips for Bank Reconciliation and Bookkeeping for Small Business 1. Bookkeeping and bank reconciliation are two of the most important activities when it comes to running a small business.

3. 2. If you don’t do these tasks correctly, you could end up paying too much in taxes or mismanaging your finances. 3. These two activities should be performed on a regular basis – preferably once per month – so it’s important to know exactly what you need to look out for and what mistakes you need to avoid at all costs.

4. 4. Here are top tips for bank reconciliation and bookkeeping for small business.

5. What does bank reconciliation mean? 1. Bank reconciliation, simply put, is an accounting technique to ensure your business's financial records are in line with your bank's.

6. 2. This includes checking all transactions made on your account (as well as any of your accounts) to verify you were not charged additional fees or that no fraudulent transactions took place.

7. 3. Reconciling a bank statement is not a one-time task; it must be done each month when you receive a statement from your bank, so it is critical to have systems in place that make reconciliation easier.

8. Step by step instructions for a typical bank reconciliation 1. Gather your bank statements 2. Open your business checking account register 3. Make sure all transaction details are correct (either by printing out your checks or making sure they match with what's on your bank statement)

9. 4. Verify deposits against your deposit slips 5. Correct errors in your register, like double charges 6. Compare deposit amounts to those on a bank statement; make any corrections

10. 7. Compare balance shown on a bank statement to that shown in a check register; make any corrections 8. Record payment of checks from a business checking account 9. Add up all entries in check register

11. 10. Write down total debits and credits 11. Subtract total debits from total credits 12. Enter difference as a credit 13. Summarize credit totals at bottom of page

12. 14. Sign at bottom of page 15. File original copy 16. Keep one copy 17. Send one copy to IRS 18. Send one copy to accountant

13. 19. Send two copies to bank 20. Put copies in three-ring binder 21. Store in fireproof safe

14. The benefits of completing your own reconciliations regularly 1. If you have your own business, doing your own bookkeeping can save you a lot of money.

15. 2. You also get complete control over how you manage your business finances and taxes, which is important if you operate in a highly specialized niche where non-accountants may not be up to speed on reporting requirements or tax code changes.

16. 3. One downside? You might discover that bookkeeping isn’t as easy as it looks! It takes time, patience and diligence to do it right—and doing it wrong can land you in big trouble with both your accountant and tax authorities.

17. Additional Considerations 1. If you handle bookkeeping tasks as part of your job, here are some tips to help you stay organized and make sure your clients get paid on time.

18. 2. If you're starting a new business or have one that's small enough that accounting tasks fall to you, here are some things to keep in mind. 3. You don't need an expensive accounting program or extensive training to manage simple bookkeeping duties, but it can be helpful if you know a few tricks of the trade.

19. Contact us Call: 1300 049 534 Website: https://reliablebookkeepingservices.com.au Email: enquiry@reliablebookkeepingservices.com.au