As each day generally has more things on the to-do list than can actually be checked off, bank reconciliations may seem to be an unnecessary chore, especially with the ease of access to online banking activity and the ability to track transactions in real time. However, continuing to push this task down the priority list is not a good idea, as the reconciliation process remains an important tool for a company to analyze the integrity of the transactions recorded in its accounting system.

For example, there may be times when bank transactions are entered in the books incorrectly that, if not identified during the reconciliation process, may remain on the account and result in an incorrect bank balance reported on the company’s balance sheet. Also, there may be instances where a transaction is made directly from the bank account (a wire transfer made or a bill payment scheduled directly with a vendor); if these transactions are not identified and included in the accounting system, the company will not have a correct bank balance reflected on its financial statements and increases the potential for missing expenses (or deposits).

The reconciliation process also provides oversight to the activity that occurs on a monthly basis and is a way for management to ensure that all transactions are appropriate and necessary for operation of the business.

If you find that your to-do list has had “reconcile the bank account” on it for an extended period of time, let us know – A&C can assist you with catching up your reconciliations or help you implement a plan that helps make this monthly task a bit less of a chore.

If you have questions regarding this topic, please reach out to us at (469) 467-4660, or