Bank Reconciliations

How often do you review your monthly bank statements in-depth?

Have you ever reviewed your statements and felt as though your bank balances were wrong?

To have a complete picture of your finances, it’s important to reconcile your accounts regularly.

With only so many hours in the day, reconciling your accounts often falls to the wayside. Instead, you should consider having a certified bookkeeper manage your bank reconciliation so you can have a clear understanding of your finances.

At AA Tax & Accounting Services, LLC, we understand the importance of bank reconciliation, which is why it’s a core part of our bookkeeping services. By helping our clients have a better idea of their balances and cash flow, they’re able to make more confident financial decisions.

AA Tax & Accounting Services, LLC offers the following bank reconciliation services to all of our clients both locally and nationally:

  • Entrepreneur and Small Business Bank Reconciliation
  • Bank Reconciliation for Businesses and Corporations
  • Personal Bank Reconciliation for Individuals
  • Bank Reconciliation for Not-for-Profits (Non-Profits)
  • Bank Reconciliation for Start-Ups

If you need any of these bank reconciliation services, give our team a call. Keep reading to learn more about what our team can do for you.

What is bank reconciliation?

Bank reconciliation is the process performed by a company or individual to balance and match bank statements to the accounting records. This is done by comparing the amounts recorded by the company to the amounts on the bank statement to ensure that everything aligns and adds up accordingly.

When payments match up currently to the corresponding invoices, the transaction has been balanced. This process allows you to uncover any discrepancies and resolve any differences so that they become reconciled.

Without proper bank reconciliation, it’s difficult for an individual or company to have clarity over their finances.

How to perform bank reconciliation

At the end of each month, you receive a bank statement that details all of the transactions, deposits, and withdrawals that occurred over the previous month. Once you have the bank statement in hand, you can begin the bank reconciliation process at the place you left off last time.

Review deposits and withdrawals

Review your business records and match them up with the corresponding line item on the bank statement. If the amount of each deposit or withdrawal matches up, make a note.

If there is an item missing in your records, you will have to add it.

Account for income and expenses in your records

Compare your books against the bank statement to ensure that each transaction is properly accounted for. Any unexplained differences will need to be investigated, so you understand why the income and expenses aren’t aligning.

Adjust the bank statement

In certain instances, your bank statement may not accurately reflect your transactions for the same time period due to pending deposits, outstanding checks, or even bank errors.

If something is not accurately reflected on the bank statement, make the necessary changes.

Adjust the cash balance

Similar to adjusting the bank statement, you will also need to adjust your books to correctly reflect any transactions made in the cash account.

Review the end balances

Now that all necessary adjustments have been made to the bank statement and cash balance, you’ll need to review the end balances to verify that they are now the same.

If they align, you’ve completed the bank reconciliation process.

If the end balances are still not equaling one another, you’ll need to repeat the bank reconciliation process to resolve any remaining discrepancies.

Call AA Tax & Accounting services for bank reconciliation

There are only so many available hours in the day, and as a business owner, you have a long to-list that needs to get completed. To help you win back some time, AA Tax & Accounting Services, LLC offers various bookkeeping services, including bank reconciliation.

You can trust our team to deliver a level of service that the average bookkeeper cannot. AA Tax & Accounting Services is available to help you with all your bookkeeping needs. Contact us today to schedule a consultation.

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