The humble bank reconciliation…

ReceiptsCan you believe it’s already the 1st day of the 2nd month of the financial year??

Of course with the end of month comes another round of financial month end procedures…including the bank reconciliation.

I’ve worked with many clients in the past who haven’t really bothered reconciling their bank account on a regular basis…and in all honesty…it drives me nuts!

In recent years, the use of internet banking, including receiving direct deposits into your bank account and making direct payments (either by transfer or Bpay)…has reduced the number of outstanding transactions a business might have, since there is only a short delay in funds being cleared…but it is still important from a “good practice” point of view to reconcile your bank account on a regular basis, plus there’s the added bonus of having instant access to your bank statement!

Reconciling your bank account ensures that you are recording all of your automatic payments (such as loans and bank fees etc) as well as ensuring you receipt all amounts received from clients (this helps in avoiding unnecessary follow up calls…awkward!).

And don’t forget to reconcile any business credit card accounts while you’re at it – many GST claims are delayed by not properly processing and reconciling business credit cards…those small amounts can add up quickly!

So please do me a favour…pretty please…reconcile your bank account at least monthly, at the very least quarterly…and the absolute least annually!!



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