Identify and correct errors made during bookkeeping by comparing entries against bank and credit card statements.
Good books are dependent on consistency with bank and credit card statements. Without this consistency, your books may be misleading.
Find fraudulent and errant transactions that arise from stolen credit cards, bank errors, or employee misdeeds.
Reconciliations are critical to ensure accuracy, consistency, and financial protection. Reconciliations are the process of comparing accounting entries against bank, credit card, and other financial account statements. Bookkeeping errors will occasionally occur by either mistyping a value or missing a transaction altogether, but can easily be corrected by comparing statements with your books. Without this regular process, your books can become inconsistent with account realities and mislead your financial decisions.
An additional benefit of reconciliations is detection of fraudulent and errant transactions. Credit cards and bank accounts are under constant attack and reconciliations helps detect unwarranted transactions before it’s too late. It can also be a tool to identify employee fraud where transactions were made, but not recorded in your accounting software.