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Why should you reconcile your bank accounts regularly?

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Reconciling bank accounts is an important aspect of bookkeeping that many business owners simply aren’t aware of…  but if you leave it for a few months (or a few years…!) it can very quickly become a bit of a mess that can take quite a bit of time (and money) to get in order.

The biggest issue that happens when you don’t reconcile your bank accounts is that you don’t know if your business figures are correct. Anything can be entered into your business’ accounting system! It’s so important your accounting system is checked against the bank statements to ensure they are correct. 

If this simple task ends up on the backburner, you can run into some significant issues. Discrepancies between your accounting system and bank statements can result in errors in any aspect of your business. One example is if payroll is entered multiple times into your system but employees have only been paid once, the payment amounts for PAYG and superannuation reported to the ATO via Single Touch Payroll are overstated. 

The best way to avoid issues is to reconcile your accounts regularly. This is something that your bookkeeper (AKA – us!) can do for you. If you want to spend less time behind a screen and more time doing what you do best (growing your business!), send us a message so we can give you some more information about our regular bookkeeping packages.