Staying on top of important bookkeeping tasks – such as bank account reconciliation – is crucial to the ongoing success of your Perth or Australian-based business.
Bank account reconciliation should be completed regularly for all company bank accounts (and reports created) as a way of detecting errors that, if missed, can create headaches down the track.
Tracking bank transactions through account reconciliation is essential, even if your SME uses automated systems. No matter the technology being used, mistakes can be made, and they need to be picked up sooner rather than later, so informed business decisions based on accurate cash flow can be made.
If you’re having trouble prioritising bank account reconciliation, keep in mind that not catching errors – or fraud – can be costly.
At Astute Business Consultants, bank account reconciliation is a central service we offer Perth and Australian businesses and, because we’re experts, we make the process stress-free and efficient.
Ensuring your business avoids ATO issues and stays compliant is easier with our cloud-based account reconciliation and bookkeeping systems.
What is the bank account reconciliation process?
Bank account reconciliation can identify mistakes related to missed payments, overpayments, missed receipts or processing, ensuring your bookkeeping records are accurate.
It involves matching what your official bank statement says with what your internal business records show and requires financial know-how.
These are the key steps involved in bank account reconciliation:
- Comparing deposits on the bank account statement with in-house deposit records
- Adjusting bank statements
- Adjusting the cash account
- Comparing the balances
Why is it important to get business bank account reconciliation right?
Bank account reconciliation is a critical double-checking exercise for every business, helping you find and fix mistakes sooner.
It helps SMEs:
- understand their cash flow & profit
- keep on top of fees being paid
- detect fraud & incorrect payments
- embrace tax breaks by identifying tax-deductible expenses
- be tax return ready
Not regularly performing bank account reconciliation can mean a business makes decisions based on data that’s inaccurate, which can be damaging. For example, errors may lead to technology being purchased or a staff member employed when the operation can’t afford it.
When issues relating to unpaid accounts or unnecessary payments are identified and set right, this is obviously of benefit.
Bank account reconciliation. Can your business afford not to do it?
How can Astute help your Perth business?
Constantly dealing with your bank reconciliation not balancing?
Don’t have time to prepare your business bank account reconciliation report?
Aren’t sure what the key features of a bank account reconciliation report are?
At Astute, we are adept at handling bank account reconciliation and a raft of other crucial bookkeeping services.
We also offer professional business advisory services to help your SME flourish.
We do this by providing powerful insights and exceptional advice utilising our deep knowledge.
FAQs
Q. What other business areas need to be reconciled?
Balance sheets, ledgers, credit cards, payroll accounts, GST & BAS accounts, accounts payable, accounts receivable, inventory & assets etc. Astute can advise your business on its specific needs.
Q. How regularly should a business reconcile its bank accounts?
Bank account reconciliation should, ideally, be done each time a statement is issued to ensure discrepancies are picked up in a timely manner.
Q. Does the Astute team know how to work with Xero and MYOB?
Yes, our specialists are trained in Xero, MYOB, and Xero single touch payroll.
Q. How else can Astute help SMEs?
We offer a range of essential bookkeeping services, BAS Agent Services and business advisory services to support the sustainable growth of your SME.
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