BANK RECONCILIATION
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Most people view bookkeeping as a process they go through for one reason only: "the tax return." With this thought process in mind, it is no wonder many do not want to bother with it until the end of the year. Bank reconciliations should not be considered optional. Reconciling your bank account(s) is as critical to your business as generating sales. The reconciliation process helps you keep a handle on your current cash status. By perfecting this step, you will be able to identify any debits or credits not accounted for on your end (e.g., a deposit made but not logged into your register, unaccounted bank charges, erroneous charges, uncleared checks, etc.). This process also ensures your books match the bank's records transaction by transaction. Reconciling your bank account on a monthly basis will assist you in keeping a "real" balance within your checkbook.
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