A bank reconciliation is the process of matching the balances of your accounting records with information on your bank statements. Bank reconciliations are used to ensure your account(s) are accurate by means of comparing your ledger of transactions to your bank records. Transactions are defined as payments, bank fees, and deposits. In addition, reconciling the credit card payments that support your business account(s), allows you to visualize your expenses, uncleared transactions, and balance. At a minimum, it is recommended to engage in actively updating your records on a monthly basis when your bank sends out your company’s bank statement containing the beginning cash balance, transactions during the month, and ending cash balance.
It is extremely unlikely that a company’s ending cash balance will match the ending balance of a bank. Because of this, bank reconciliations are absolutely necessary to maintaining accurate, up-to-date accounting books.
Investing in a bookkeeping service provider will protect your business against reconciliation discrepancies while creating symmetry across your accounts and bank statements. As a recognized member of the Institute of Professional Bookkeepers of Canada, Platinum Bookkeeping and Tax offers monthly accurate and cost-efficient reconciliation solutions to help balance your business, giving you the peace of mind that you deserve. Utilizing a cloud-based application of QuickBooks software, clients will be able to view and edit their financial information 24/7.
Ready to get started? Platinum Bookkeeping & Tax is here to help you and your business with your bank or credit card reconcilitation. Contact us today to learn more about how our solutions can save you time and money.