A professional and experienced bookkeeper is an important asset for any business. Melbourne bookkeepers are experts in tracking financial records as you may not have time to do it thoroughly. They have the knowledge and expertise to manage bookkeeping tasks on your behalf. In addition to this, they also give insight into possible financial issues in the company. To help you stay on top of business books, bookkeepers help you by performing different tasks. When it comes to reconciling bank accounts, you should get help from professional bookkeepers. To know more about bank account reconciliation, continue reading this blog.
Overview of Bank Reconciliation
Bank account reconciliation is an effective method for business owners or bookkeepers in Melbourne to cross-check if the financial records of the company are up-to-date and accurate. It is done by comparing business accounts with bank statements and checking if the numbers are accurate. As a result, any discrepancies between the two accounts can be resolved.
What to Consider When Reconciling Bank Statements?
Bank account reconciliation happens when you compare records of expenses and sales against bank statements. Bookkeepers for small businesses can help you reconcile bank statements. Moreover, the following are tips that you need to follow for bank account reconciliation:
Access Bank Records
Bookkeepers will get a list of financial transactions from the bank. This data will help to compare the business’s records against bank statements.
Get Business Records
After getting bank records, now you need to have your business’s records. Your business records might be on a spreadsheet, in a logbook, or accounting software.
Check Your Opening Balance
Compare the starting balance on your bank statement against the starting balance on your business records. If you are doing reconciliation daily, then you can be sure that your all records are accurate. Therefore, you can opt for bookkeeping in Melbourne to get your bank accounts reconciled.
Review Your Financial Transaction
Once your opening balance is verified, it is the right time to review your all financial transactions. Bookkeepers in Melbourne can help you go through each transaction to find errors (if any). Some bank account reconciliation examples might include refunds, sales, deposits, interest charges, payroll expenses, and bank fees. Bookkeeper compares each record to ensure accuracy. A thorough review can save a lot of time by catching errors at an early stage.
Adjust Bank Statements
You should add any items to your business account that are not shown on the bank statement if you find them. These things could consist of cash-in-transit, awaiting deposits, unpaid checks, and banking mistakes.
The bank balance will need to be increased with any upcoming cash deposits. In order to match your own records, the balance should be reduced by any unpaid cheques. It may be necessary to add or subtract from errors, so make sure you analyse them before making any adjustments.
Check the Income on Your Business Books
Each entry must match a deposit on your bank account statement. If something is missing, then the bookkeeper of Melbourne can find out the reason behind this.
Check the Expenses on Your Business Books
Each item must match a withdrawal shown on your bank statement. Find out why if not. You might have paid with cash or another account, or one of your payments might not have cleared yet. Furthermore, to stay on top of your business books, you can seek help from experienced bookkeepers.
End Balance
After checking all the withdrawals and deposits, your business bank balance must match the totals in your business bank accounts. If you have accurate financial records, then these records will be beneficial for tax accountants. To hire a professional accountant near your area, you can search for ‘tax accountant near me’.
Conclusion
The bank reconciliation process is important for every business, so it must be done carefully. It is recommended to reconcile your bank accounts every time you receive a bank statement. If you don’t have enough time for this task, then it is advisable to seek help from professional bookkeepers as they are experts in managing bookkeeping tasks. You can also contact Reliable Bookkeeping Services provider.