Reconcile your bank account every month

You will not believe the number of "bookkeepers" our firm has come across that can not reconcile a bank account. In all fairness, we have run across some situations where the owner's recording and banking practices have made a normally simple task into a hair pulling nightmare.

Robert C Olivieri, Jr CPA suggests all businesses should not only know their actual bank balance on a monthly basis but on a daily basis as well. You would not believe the number of small businesses that call the bank, on a daily basis, to inquire as to how much money they have.

Keep in mind that your records normally reflect cash increases and decreases before the bank processes and records them. The technical terms are outstanding checks and deposits in transit. As a business owner you do not have to actually reconcile your bank account but do occasionally check to see that this task is actually being performed by an experienced bookkeeper or accountant.

Feel free to call us after 600pm at 215.550.3636 with any questions or for a quote on servicing your tax and accounting needs.

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