Regardless of the size of your company, most probably you have to generate and receive invoices and reconcile bank accounts weekly, fortnightly or monthly. Being a business owner, you have to look after numerous things and bank reconciliation and invoicing can add more stress. However, you must have a bookkeeper by your side to help you manage invoices and the bank account reconciliation process on your behalf so you can make a business strategy to grow your business.
Overview of Invoicing
A key component of your money-collecting process is invoice generation, which also helps you stay on top of your obligations. However, if you’re still working alone, it can also be a time-consuming activity. If you are not paying attention, it is simple to overlook an invoice or fill it out wrong.
It is observed that many business owners are still manually billing their customers when they first come to bookkeepers. Some people aren’t even using Excel, they’re making and managing bills with a Word document and a manual calculator.
Any error on your invoices (whether they relate to a buy or a sale) can lead to financial havoc. It can cause you to fall behind on your payments or, in the worse case, it can harm your cash flow. The possibility of forgetting what is owed to you is one particularly worrying issue. Even though you may have made a sale, nothing is certain to happen until the money is paid and deposited into your account. If enough bills go unpaid, your cash flow position can become critical.
Bank Reconciliation Explained
Bank account reconciliation specifically refers to the process of correcting differences between two statements or accounts in accounting and bookkeeping. Most business owners don’t reconcile their accounts until their quarterly bank statements arrive. However, it is suggested to get bookkeeping services for your organisation to get your bank account reconciliation done.
Bank account reconciliations serve the straightforward function of ensuring that your bookkeeping and accounting are accurate by comparing your internal bookkeeping to your bank statements, which have the most accurate records of your funds.
You will have to carefully examine your bank statement during a bank reconciliation to look for discrepancies between it and your internal bookkeeping. If anything is incorrect, you reconcile the discrepancy by making the necessary corrections to your paperwork (or, in the unlikely event that the bank made a mistake, call the bank). If you don’t have enough time to look after your bank statements and business books, you can seek help from a professional bookkeeper to get it done effectively.
Bank Account Reconciliation Mistakes
With all bookkeeping practices, it is easy to make mistakes for those who don’t know how to reconcile bank accounts. For instance:
• your bookkeeping system may not store sufficient information to make the correction
• you may forget to enter some entries, or you may not know complete details regarding a specific entry
• you could make calculation mistakes
All these errors can lead to inaccurate records or you may end up spending hours to understand the mistake. If you make mistakes in the records, then most probably, your tax lodgment will be wrong too. Therefore, before giving your records to a tax agent in Melbourne for tax lodgment, make sure to correct your records.
How a Small Business Bookkeeper Can Help You?
Bookkeepers for small businesses can help you with invoice management and bank account reconciliation. Bookkeepers have the skills and training needed to perform these tasks with maximum accuracy and efficiency. Apart from cleaning up your accounts, a bookkeeper also looks after invoicing, financial statements, bank account reconciliation, recording financial transactions, accounts payable, accounts receivables, etc. When you hire a bookkeeper for your organisation, you don’t need to spend hours managing your business books on your own. Get your business books in order by seeking help from a trusted small business bookkeeper.
Don’t have enough time to do your bank account reconciliation, invoicing, and other bookkeeping tasks? Let professional bookkeepers take care of it. If you want to get a bookkeeping solution for your company, you can seek help from a Reliable Bookkeeping Services provider.