Why is an account reconciliation important?
Account reconciliation should be a part of every bookkeeping service. It is a way of picking up errors in processing or missed payments and receipts. Even when usin automated systems with bank feed technology it is still important to reconcile the bank account. Errors or mismatching can occur during bank feed importing and matching, so by completing an account reconciliation you will be able to pick these errors up.
Account reconciliation should be completed for the following (there may be others applicable in your business):
- Bank accounts
- Credit cards
- Payroll accounts (Wages, Superannuation, PAYG Payable)
- GST and BAS accounts (including reconciling to your ATO balance)
- General Ledger accounts for Year End roll-over and tax preparation.
- Accounts Payable
- Accounts Receivable
- Inventory and Assets
If you require bookkeeping assistance in reconciling your accounts please contact us regarding the different bookkeeping services we offer around account reconciliation, or we can teach you how do it in your own small business accounts.