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- info@mbgcpa.com
- 5601 Democracy Drive Suite 150, Plano TX 75024
At a very minimum, reconciliations should be conducted once a month when bank statements are sent. However, the most successful businesses perform it daily based on month-to-date information accessed through the bank’s website.
When you reconcile your accounts daily, you’ll be able to quickly detect and correct problems. Particularly, the daily reconciliation of your bank account will allow you to spot fraudulent withdrawals or fraudulent ACH debits. Most importantly, it empowers you to deliver a timely response to limit exposure.
As we previously mentioned, bank reconciliation can empower you to detect fraud from an array of sources. For example, if you pay a vendor by check, and they fraudulently change the amount, you would know in a timely manner through reconciliation. At the same time, if you share a joint account with a partner, you can detect if they’re withdrawing more than what’s recorded in the books. Although this process will not prevent fraud, it can empower you to know, initiate a timely response, and limit exposure.
As a business owner, you are expected to juggle several moving parts simultaneously. You must make sales, fulfill orders, send invoices, collect payment, and continually nurture relationships — all while ensuring your books are in order. And when it comes to the latter, there are simply too many functions and attributes.
Fortunately, you don’t have to do it alone! At MB Group, we’re a team of experienced accountants who can help you best manage business accounting, including bank account reconciliation.
Contact MB Group today to learn how we can help you create more efficiencies.
