Reconciling your bank account each month provides you with an accurate picture of your business’ finances.
By undergoing routine monthly bank reconciliations, you will be able to stay ahead of any accounting problems that may occur. Bank reconciliations allow you to identify any discrepancies in your monthly statements, provide up-to-date information to any necessary stakeholders, and protect yourself and your business from any tax or banking implications.
The process of monthly bank reconciliations allows you to:
Identify lost checks, lost deposits, and unauthorized wire transactions
Detect and prevent excess and unjustified bank transactions
Ensure transactions are posted correctly by your bank
Detect and prevent embezzlement of funds from within your company