Why You Need to be Reconciling
Reconciling credit card accounts and bank account statements with your company’s own financial records ensures accuracy in your accounting process and helps detect any fraud or discrepancies.
A bank or credit card reconciliation requires a comparison between all transactions carried out by a company and all of the transactions that occurred in various accounts (such as credit card and bank accounts) within the company chart. This will enable the accountants to verify and note any discrepancies and to allow them to resolve any issues.
Importance of Reconciling Your Business Accounts
Most often, businesses will use credit cards to make purchases for their business. Business account reconciliations are a part of the accounting process that every business should complete. Reconciling them is ideal for the following reasons:
- Recognize illegal purchases, fake charges, and wrong postings
- Keep records of all actual liabilities in the company
- Record all purchases with missing receipts
- Manage interest charges
- Prepare and correct the general business ledger
Looking For a Bookkeeping Partner?
Ideally, businesses with large amounts of transactions should be reconciling their transactions on a weekly or even daily basis. This allows for a fresh recollection of the details of every transaction creating accuracy and allowing you to close the month more efficiently.
Reconciling can feel endless for owners, as they continue with the day to day of running a business. For this reason, many business owners tend to put this task to the wayside as the ever growing volume of data in your small business can be challenging to complete on your own.
At Indigo Bookkeeping Services, we commit to using accounting software that enables effective, timely, and secure bookkeeping services allowing us to complete accurate and dependable bookkeeping on a monthly basis for our clients.
Let us take this tedious task off your hands! Contact us today.