Category: Bank Reconciliation

4/25/2022

What is a Bank Reconciliation Statement?

As our team explains when discussing the importance of bank reconciliations,

The general ledger contains a record of a company’s cash transactions, and a bank statement tracks all money moving in and out of a company’s account. So, theoretically, these two statements should convey the same information and result in the same cash balances. However, in practice, this is rarely the case. Businesses of all sizes need to perform regular reviews, called bank reconciliations, to ensure that these two documents balance.

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8/21/2018

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How to Prepare a Bank Reconciliation

Performing a bank reconciliation can be daunting for any business owner or employee who is tasked with the job for the first time. Matching the inflows and outflows of cash from the business ledger to the beginning and ending bank balances can get complicated, especially for high-volume accounts.

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8/14/2018

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Typical Bank Reconciliation Problems for Small Businesses

Bank reconciliations are rarely simple. Typically, accounts do not instantly reconcile, requiring at least some degree of investigative work to determine where discrepancies are originating from and which financial entries need to be booked to keep records aligned. In other cases, lingering reconciliation issues can identify the need for different business partnership payment terms, banking options, or withdrawal protections.

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8/8/2018

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What do you Need to Reconcile a Bank Statement?

At its most basic level, a bank reconciliation only requires two items – what is being reconciled and what it is being reconciled against.

Since bank reconciliations are account-specific, this requires obtaining current records of cash totals that should be present for a single account only.

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7/31/2018

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How Often Should you do a Bank Reconciliation?

The most common question we hear is “What is a bank reconciliation?” followed immediately by “How often do I need to do a bank reconciliation?”

Overstretched bookkeepers and accountants as well as owners and employees wearing many hats tend to de-prioritize the need for regular bank reconciliations because the process can be time consuming.

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7/25/2018

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What is a Bank Reconciliation and Why is it Important?

The general ledger contains a record of a company’s cash transactions, and a bank statement tracks all money moving in and out of a company’s account. So, theoretically, these two statements should convey the same information and result in the same cash balances. However, in practice, this is rarely the case. Businesses of all sizes need to perform regular reviews, called bank reconciliations, to ensure that these two documents balance.

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