ROSYAN BOOKKEEPING SERVICES -  Your affordable Bookkeeping & Consultancy Services.
RSS

Recent Posts

Turning your Passion into Business.
Intuit Firm of the Future Road Show( Baltimore).
Get Paid What You're Worth.
Tax Credits & Tax Deductions.
Tax Season Still On................Time Running Out

Categories

1099 Tax Filing
2014 standard mileage rates
2014 Tax Returns
2015 Tax Filing Season
2015 Tax Returns
2016 tax
2016 Tax Filing
2016 tax filing season
2016 tax returns
2017 tax filing
2017 Tax Filing Season
2017taxes
2017TaxSeason
Account Setup
Accounts Payables
Accounts Receivables
Balance Sheet
Balance Sheet Reporting
Bookkeeping
bookkeeping,Tax Returns,QuickBooks,Bank Reconciliations,bookkeeping services,small business
Budgeting,Accounting,Business Planning
Business Budgeting
Business Expenses
Business forecasting
Business profit
Cash flow
Cash flows
Chipcards
credit card expense
Credit Card Rules
EMV
Finance Management
Financial Position
Fraud
Health Insurance credits
Intuit Road Show
Inventory
Law of Money
lower your taxbill
Money Perspective
New Credit Card Rules
New Year Resolutions
New Yer Planning
Online Banking
Online Fraud
passion
Payroll
Personal development
Personal Finances
profit
profit forecast
profit making
Quickbooks
QuickBooks Review
QuickBooks Setup
QuickBooks Software
QuickBooks Support
QuickBooks Training
QuickBooks,Small Business Bookkeeping,Bookkeepers rates,business decisions
Small Business Setup
Spending Wisely
Tax Bill
Tax Deductions
Tax Filing
Tax Preparation
tax refunds
Tax Returns
tax season
taxes2017duedate
Tracking your expenses
w-2
Wealth Management
Year End
powered by

My Blog

Have You Reconciled Your Bank Statements?

Have you reconciled your Bank Statements lately? Just a Reminder, We have only a few days left to the end of the Year. Very Soon, It will be Tax Season and you will need to submit your Financial Statements for Tax Filing. Can you confidently say that your Company Accounts are updated and reconciled?

It is very important to reconcile your Bank and Credit Card Statements at the end of every MONTH. A Bank Reconciliation is the balancing of a Company's Cash Account Balance to its Bank Account Balance. It is important to ensure that the Cash Account and Bank Account Balances match. The Main Document used for Bank Reconciliation is the Bank Statement.
There are great benefits in reconciling your Accounts and we will be looking at a few of them today. These Benefits include:

  • Accurate Financials - Financial Statements are more accurate and can be relied upon, when reconciled. 

  • Better Business Decisions - Everyone knows that when your Financials are accurate, you are able to make better decisions for your Business. This ultimately enhances your Business Growth.

  • Better Planning - When Bank Reconciliations are done monthly, you are assured that the entries entered into your Company's Account are all correct, this also gives you a clear view of the checks that you may have issued but has not cleared from your Bank Account. 

  • Eliminating Money Leaks from your Company - The Last Thing you will want for your Business is for your Hard- Earned Money to go down the drain because of a Money Leak in your Business. It is worthy to note that Only Bank Reconciliations will catch Big Money Leaks like A Deposit that was not posted to your Bank Account due to various reasons ranging from Returned items to Bank Errors, Unnecessary Bank Charges, Fraudulent Activities, Double Vendor Charges and Other Common Errors. If your Bank Reconciliations are not done monthly, you could be losing thousands of Dollars in errors, that could have been captured on time.

  • Updated Company Records/Reduced Bookkeeping Charges - The Month of January is a busy time for Accounting Professionals.; it's a period of closing the Year End Reports as well as Tax Preparation Season. Any Business Owner that doesn't have a Bookkeeper presently will definitely spend twice as much to get one, between the months of January - April. Would it not be wise to get a Bookkeeper Now and tidy your Books before the Rush Period?

I have listed a few of what I discovered in my years of engaging Bank Reconciliations for my Clients. For easy assimilation, I will categorize them as Internal and External Observations:

INTERNAL OBSERVATIONS:
1) Pilfering Employees/Employees that steal from the Company.

2) Cash Registers not closed out.

3) Bank Deposits not being timely deposited by the Employees.

4) Cash Advances and Loans taken by Employees are not properly accounted for.

5) Unauthorized Purchases made on the Company's Credit Card.

6) Forged Checks being endorsed and cashed at the Bank.

7) Managers taking Clients to a strip club on the company's Credit Card (Yes, This Happens).

8) Rampant Starbucks purchases on the Company Credit Card.

9) Wrong Recording and Classification of Loan Accounts, Line of Credits and credit Card Accounts.

EXTERNAL OBSERVATIONS :
1) Customers reversing charges, without the knowledge of the Business Owner.

2) Automatic Payments increase by the Bank.

3) Utility Companies like Telephone/Internet Companies billing Clients twice in the same month.

4) Fraudulent Purchases on the Company Credit Card.

5) Match.Com Payments made on the company Credit Card.

6) Unauthorized Withdrawals by the Banks ( Inadvertently claiming the Business Owner authorized it).

7) Bill Payments issued via Bill Pay were not mailed out by the Bank to the vendor issued, hence the business Owner incurs late charges for Non Payment of Bills.

8) Over $3,500 in Annual Bank Fees for Overdrafts/NSF/Late Fees.

We can see that most of these items are charge worthy and I have seen a lot of Business Owners experience One or more of these errors because they don't reconcile their Statements. We need to have internal and external procedures in place to get our accounts reconciled. If you have not been recording your transactions from the beginning of the year and have not reconciled them, the best time to start is NOW. 

Please do not feel that it is a waste of time to reconcile your accounts, you never know, you may have been losing a lot of cash under your nose. Try to take a look at your account today and begin to experience increased Cash flow. If you feel that you don't have time to get to your Bank Reconciliation, Feel Free to Give Us a Call on 202.422.4586. We are always available to help you.

3 Comments to Have You Reconciled Your Bank Statements?:

Comments RSS
Michael Grants on Tuesday, November 03, 2015 10:51 AM
Great Article. Great Job.You've just opened my eyes to a lot of mistakes that I have been making in my Business;I never realized that I have been losing money right under my nose, As a matter of fact, I see some of these items in my Bank Statements but have not taken the time to really investigate them. After reading your Article, I now realize that Bank Reconciliation is very important. Thanks a lot for this enlightenment. Really Appreciate your Good Work.
Reply to comment


Sharemarket tips on Monday, November 09, 2015 6:00 AM
Thanks a lot for this contribution! It's been very useful for me. Everything is very open and represents very clear explanation of issues.
Reply to comment


Nifty Future Trading Tips on Saturday, July 23, 2016 1:56 AM
I would like to articulate thankfulness you for these very good facts and figures! I am very involved for this post. This place is so cooperative. Thank you for your nice sharing ... Thanks!.
Reply to comment

Add a Comment

Your Name:
Email Address: (Required)
Website:
Comment:
Make your text bigger, bold, italic and more with HTML tags. We'll show you how.
Post Comment