Bank reconciliation keeps your bookkeeping accurate and can help lower your tax, alert you to fraud, and allow you to track costs. Bank reconciliation involves a comparison of your sales and expense records against the record your bank has. It can take a lot of time to do it manually, so you may want to consider using software. Most banks can send transaction data directly to accounting software like Xero through a secure online connection.
However, if you do bank reconciliation, do it often. The longer you go without doing it, the longer it will take to catch up. It won’t just be that you have more transactions to do, it will take longer per transaction, because you’ll have a harder time recalling the details. So, schedule the time to do it every week or even every day. And set up a system that makes it quick and easy to grab the records you need. Talk to us, we can help.