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
How to Do a Bank Reconciliation for Your Small Business.pptx
1. How to Do a Bank Reconciliation for
Your Small Business
2. 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.
3. 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.
4. 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
5. 3) an account register or day book
4) account ledgers
5) balancing items list.
6. 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.
7. 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.
8. 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.
9. 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.
10. 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.
11. 3. It’s important to get the process down
pat before reconciling so it’s easier to spot
potential discrepancies during the
reconciliation process.
12. Contact us
Call us: 1300 049 534
Website:
https://reliablebookkeepingservices.com.au
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Email:
enquiry@reliablebookkeepingservices.com.
au