How to Do a Bank Reconciliation for Your Small Business?

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How to Do a Bank Reconciliation for Your Small
Business
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1. When youre running your own small business,
keeping track of everything can be a difficult
task, especially when it comes to your finances.
2. Thats why every small business owner should
know how to do bank reconciliations, as they are
one of the most important tools in understanding
and managing your finances.
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What is a bank reconciliation?
1. A bank reconciliation is the process of
matching the balances in your company's
accounting records with the corresponding
information from your bank statements.
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2. This ensures that your books are accurate and
up-to-date. In order to perform a bank
reconciliation, you'll need the following
1)Your financial institution statement or
passbook 2) business deposit slips
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3) an account register or day book 4) account
ledgers 5) balancing items list.
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Why do you need a bank reconciliation?
1. A bank reconciliation is an important part of
bookkeeping for small business.
2. It ensures that the money in your bank account
agrees with the records in your accounting system.
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Who should be responsible for doing the bank
reconciliations?
1. As the small business owner, you should be
responsible for reconciling your business bank
account each month.
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2. This is important because it ensures that your
books are accurate and up-to-date.
3. Plus, it can help you catch errors and prevent
fraud.
4. It's best to do this as soon as possible after
the transaction date - when you still have all of
your records on hand.
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5. If you don't reconcile often enough, or if you
make mistakes in reconciliation, then your
bookkeeping system won't accurately reflect how
much money is coming in or going out of your
company.
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How often should your company do its bank
reconciliations?
1. Your company should reconcile its bank account
at least once a month.
2. This will help ensure that your books are
accurate and up-to-date, and will also help you
catch any errors or fraudulent activity early on.
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3. Its important to get the process down pat
before reconciling so its easier to spot
potential discrepancies during the reconciliation
process.
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Website https//reliablebookkeepingservices.com.a
u/
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