Bank Reconciliations

To prepare your accounting records for compliance bank reconciliations are a must. Regularity is the key word here. Bank reconciliations that are prepared monthly are invaluable in monitoring the cash flow of your business.

Cash is your most valuable asset so now is a good time to have Tradie Bookkeeping Specialists put in place the control mechanisms that will uncover any discrepancies such as unauthorised bank withdrawals.

We use a bank reconciliation to compare your records against those at the bank, checking for any differences between both records. Both accounts payable and accounts receivable need to be matched up against their corresponding transactions.

Credit cards also need to be correctly reconciled for strong internal control. With regular bank reconciliations you can also ensure that you are being charged correctly for the items and tools you receive from your suppliers. Reconciling will pick up any discrepancies such as overpaying for something because of clerical error from the supplier side. You also want to know that all transactions are in your ledger, as it is easy to forget to enter an expense or a payment when you’re in a rush or when paperwork simply isn’t your “thing”.

That’s why Tradie Bookkeeping Specialists, right here on the Sunshine Coast, are available to help you. Let’s not forget your credit cards either: Credit cards, if used smartly, can be a huge asset for your business and assist with your cash flow and give you what is, in effect, an extra thirty plus days of interest free grace.

Some items, such as cheques that are outstanding, won’t show up on your bank statement. There may be electronic transfers at the bank that you didn’t know about that require accurate reconciliation.

If you don’t have accurate information about the amount of money in your account: if you are unable to drill down and know exactly where your money is going, then how can you make accurate and powerful financial choices?