Nov 1 • Q & A
What’s the purpose of reconciling bank accounts in bookkeeping?
Q: What’s the purpose of reconciling bank accounts in bookkeeping?
A: Bank reconciliation ensures that your business’s financial records match the bank’s records. By comparing your ledger to your bank statement, you can spot discrepancies such as missed transactions, duplicate entries, or bank errors.
Regular reconciliation not only keeps your books accurate but also protects your business from fraud and helps you maintain a clear picture of available cash.
✨ Pro tip: Reconcile every month — or even weekly if you handle a high volume of transactions. Staying current saves time during audits and gives you peace of mind knowing your financial foundation is solid.
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What’s the purpose of reconciling bank accounts in bookkeeping?
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