Bank Reconciliation Importance

Bookkeepers reconcile bank statements monthly to compare your records to the actual transactions that were processed through the bank account.

This is a useful tool as it is not uncommon for transactions to have errors or be missed completely. Here you will be able to compare your records, find duplicate charges, bounced cheques or add any missing expenses to your records that missed entry. 

Skipping this practice can lead to substantial variances between the amount of cash you think you have, and the amount of cash you actually have. 

Bank reconciliation is a great way to observe spending habits, maintain accurate chart of account balances and even catch fraudulent activity.