Bank and Credit Card Reconciliations | Platinum Bookkeeping and Tax

Credit card and bank reconciliations are important for good bookkeeping records. If you don’t have these reconciliations done regularly, your decisions will be based on inaccurate information, and that can lead to cash flow issues in your business.

A bank reconciliation consists of matching your accounting information with that on your bank statements. This process ensures your books are accurate.

The Advantages of Bank Reconciliation Statements

It’s common to find mistakes in financial accounts. Sometimes this is due to fraud but usually it’s just a matter or making a mistake. Still, these errors can be costly. Catching them is a major advantage of bank reconciliations.

Other advantages include:

Identifying inefficiencies in the business
Ensuring statements and payments aren’t misplaced
Ensuring your finances are safe
Developing processes to prevent frequently made mistakes
Knowing your tax reporting is correct

More Benefits of Bank Account Reconciliations

Comparing transactions can also help you get a handle on bank fees. If, for example, your bank charges you if you have an overdraft or don’t maintain a certain balance, this will show up when you do the reconciliation. You’ll be able to see what’s going on and take steps to ensure you’re not charged the fee in the future.

Ultimately, your bank reconciliation statement will help you ensure transactions are recorded properly, catch fraud early (it’s rare but it happens), and prevent bank errors and unnecessary fees.

21st Century Bank Reconciliation

Thanks to cloud accounting, bank reconciliation is easier than ever. Your transactions automatically go into your accounting system and are recorded. The software can efficiently assist in reconciliation and, in the process, errors and inefficiencies can be quickly identified. With this information at your fingertips, you’ll be able to make strong decisions for your business based on accurate financial data.

Everyone makes mistakes (and so does intelligent automated software), but it’s important to catch them before they become costly or you make a decision based on inaccurate financial data.

Credit card reconciliations involve comparing your records with your monthly credit card statements to catch mistakes or erroneous charges. They are useful for:

Discovering fake charges, unauthorized purchases, and incorrect posting amounts
Keeping a record of your business’s liabilities
Recording purchases
Minimizing interest and late fees
Preparing an accurate general ledger

If other people in your business have company credit cards, make sure they provide their expenses to you. We like to use cloud-based software to make this easy for you and your team. All people need to do is take a photo of their receipt and our systems, integrations, and internal processes take it from there.

After your credit card is reconciled, you can rest assured that the appropriate information is accurately reflected in your financial data. With this information, you can feel confident in making decisions that will improve your business—and give you peace of mind.

Take Control of Your Cash Flow

Any good, qualified bookkeeper can keep your books up to date, especially if they’re members of the Certified Professional Bookkeepers of Canada and the Canadian Payroll Association. But even with an accurate set of books, you probably need some financial guidance and advice.

We’re there for you. All of our packages include support with our knowledgeable staff. We’ll let you know which payments are due, and when they’re due, and we know how to forecast to help keep you out of trouble. With Platinum Bookkeeping and Tax, you gain a valuable and critical line of sight into the financial health of your business.

I'm pretty impressed with the kind of service Platinum Bookkeeping and Tax provides. They were very professional in handling my accounting needs and very informative. I highly recommend Platinum Bookkeeping and Tax for your accounting needs.

I am just concluding my first year in business and have used Platinum as my bookkeeper in this tumultuous year. I will unabashedly say, I couldn't have stayed sane this year without Asif and the Platinum team holding my hand when it came to keeping things straight. Through their paperless process, they helped me keep my receivables, payables, taxes, etc. on track. I would recommend Platinum to any small- to medium-sized organization needing tax and bookkeeping assistance.

Fast and accurate service with a reasonable price. Always take time to fully explain and answer any of my questions. Highly recommend!