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Bookkeeping
Why monthly bank reconciliations matter
The simplest control in accounting, and the one most often skipped.
A bank reconciliation compares the balance in your books with the balance on your bank statement and explains every difference. Done monthly, it is the best protection a small business has against errors and losses.
What it catches
- Payments recorded twice, or not at all.
- Bank charges and interest not yet booked.
- Customer receipts not matched to invoices.
- Unauthorised or unexpected transactions.
Why monthly
A difference found the month it happens takes minutes to fix. The same difference found at year end can take hours, with documents that are harder to find.
General informationThis article is general guidance, not advice on your specific situation.