Why You Need a Bank Reconciliation and How to Do It

1. Why You Need a Bank Reconciliation and How to Do It ?

2. Why You Need a Bank Reconciliation and How to Do It ? 1. If you’re self-employed, the chances are you’ll need to reconcile your bank account on a regular basis. 2. The process of bank reconciliation can seem daunting to some, but it’s actually very simple to do if you follow the right steps each time.

3. 3. Here’s how to perform and document an effective bank reconciliation so that your business’ accounts balance at all times and you know exactly how much money is in your account at any given time.

4. The importance of keeping financial records 1. Keeping good financial records is an important part of managing your finances—whether you’re running a small business or simply keeping track of your personal income and expenses.

5. 2. No matter how big or small, every organization needs to keep track of where its money comes from, how it’s spent, and whether it overspent. 3. A bank reconciliation ensures that all transactions are accounted for in one place so that you can be sure nothing has been overlooked.

6. The Purpose of a Bank Reconciliation 1. A bank reconciliation is an accounting review that compares your bookkeeping records with those of your bank. 2. Once you’ve entered all of your transactions into Quicken, for example, you can create a trial balance report that lists each account's debits and credits (adjustments are included as well).

7. 3. With all of your transaction information at hand, it’s time to sit down with your statements from the bank itself. 4. Reviewing both sets of records together gives you an opportunity to spot any discrepancies or inaccuracies that might have otherwise gone unnoticed.

8. When should you start your first bank reconciliation process? 1. If you’re just getting started in your business it can be tempting to just check your online banking once or twice a month, maybe even less.

9. 2. After all, what’s another few bucks here or there? But it’s important to get into good bookkeeping habits from day one of your business, especially if you have serious ambitions for that small business of yours. 3. In fact, doing an online bank reconciliation as soon as you receive your statement is probably one of the best ways for new business owners to familiarize themselves with bookkeeping.

10. 4. The bank reconciliation process is an important part of small business bookkeeping. 5. Whether you’re keeping books manually or using computerized software, reconciling your bank statements on a regular basis is critical. 6. If you notice any discrepancies, it’s easy to take action—before your bank starts hounding you for unpaid fees.

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