![]() Managing cash flow is a part of managing any business. This can also help you catch any bank service fees or interest income making sure your company’s cash balance is accurate. If your bank account, credit card statements, and your bookkeeping don’t match up, you could end up spending money you don’t really have-or holding on to the money you could be investing in your business. When you look at your books, you want to know they reflect reality. ![]() If you don’t have a bookkeeper, check out Bench).įive compelling reasons why bank reconciliations matterīank reconciliations may be tedious, but the financial hygiene will pay off. In a small business, that responsibility usually falls to the owner (or a bookkeeper, if you hire one. In huge companies with full-time accountants, there’s always someone checking to make sure every number checks out, and that the books match reality. Not sure which accounting method you’re using? This article on cash vs. If, on the other hand, you use cash basis accounting, then you record every transaction at the same time the bank does there should be no discrepancy between your balance sheet and your bank statement. This is to confirm that all uncleared bank transactions you recorded actually went through. You only need to reconcile bank statements if you use the accrual method of accounting. If you work with a bookkeeper or online bookkeeping service, they’ll handle it for you. If you do your bookkeeping yourself, you should be prepared to reconcile your bank statements at regular intervals (more on that below). Who’s responsible for bank reconciliations?
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