The Importance of Reconciling Bank Statements Each Month

1
The Importance of Reconciling Bank Statements
Each Month
2

• Its a digital age.
• We rely on computers, apps, and machines to do
  things our parents (or we) used to do by hand.
• You may have a mother-in-law who still balances
  her checkbook after every check she writes. Well,
  before you tell her not to worry about that step,
  you may have something to learn from her.
• Its really important to reconcile your bank
  account each month. When doing so, there are two
  things to keep an eye out for

3

• 1) Are all your transactions correct?
• Even though we trust our computers, they can make
  mistakes.
• And, companies definitely can.
• You can get overcharged for something, you can
  get double charged, refunds youre expecting can
  get forgotten, or, worst case scenario, you get
  fraudulent charges.
• Its so much easier to keep track of your
  transactions and double check them when you are
  only reviewing a months worth of charges as
  opposed to months of charges. Be diligent and
  consistent.

4

• 2) Have all your transactions gone through?
• Some charges get stuck pending or even take a
  while to show up. When this happens, your digital
  account balance isnt actually correct.
• You dont want to make a financial decision based
  on a number that is incorrect.
• These principles hold for all your financial and
  business transactions. Its important to be
  involved and aware of what is happening in all
  your accounts. Youre more likely to catch
  mistakes or questionable charges when youre
  checking every month.

5

• Making sure your account stays reconciled
  regularly and consistently ensures that you have
  a reliable account balance that can allow you to
  make proper spending decisions.
• Youll be a better steward of your money when you
  are evaluating your accounts and expenses
  regularly.
• And, if you want a financial teammate, reach out
  to us at Culpepper CPA, PLLC.

6

• Culpepper CPA in Knoxville is a full-service tax,
  accounting business advisory firm based in
  Knoxville. We help our clients to make confident,
  tax-savvy decisions. Our accountants in knoxville
  TN began their careers in the fast-paced culture
  of global and national firms. We now believe in
  personalized advice and custom accounting
  solutions. If you are looking for knoxville
  accountant or bookkeeping services or tax
  services or payroll services in Knoxville TN,
  contact us today.