cost effective financial services to keep your books in the black.
top 3 reasons why you need to be reconciling your bank account
July 24, 2015
Do you keep track of your checkbook? I mean, really keep track of it...not just in your head.
Don't worry, you're not alone!
After working with a handful of small business owners lately that look at me like I have three heads when I ask them when was the last time they reconciled their bank account, I decided the first educational blackbook post are the top three (to match my three heads) reasons why it's crucial for your business, and you personally, to be keeping your checkbook/ledger up to date.
(the how-to is a separate post and SO easy to do!):
1. PROTECTION FROM FRAUD!
Take it from me (and probably one of your friends, family members and/or neighbors since I'm sure it's happened to them)...financial hackers exist. And they suck. And the resolution process sucks. But the good news is: in the event they get your information and target you, the sooner you know, the better! (especially if you are lucky enough to have enough cash in your account not to notice right away). Knowing immediately reduces the amount of risk and responsibility your business has for unauthorized wire transfers, automated transactions, fradulent checks, and the final kick in the stomach: all the fees your bank charges you in relation to this unfortunate event.
2. CATCH ERRORS!! Per most banks, customers only have 30 days to notify them of a discrepancy (the deadline is right on your statement). Trust me: banks. make. mistakes. Why should you pay for unjustified bank charges? They can add up quickly and they get away with it a lot of times because no one questions them! Banks aren't the only ones that get away with it. Other services you use may pull a random fee or two out of your account with no explaination...this is your chance to ask why. On the flip side, a manual transition error could make a huge difference in your available balance, which could lead you to believe you have much more (or less) money then you really do.
3. SAVES YOU MONEY!!!If you've ever had to sort through a years worth of bank statements and boxes of receipts to answer your tax accountants questions for your tax return, only to be handed a big bill from your tax accountant for preparing your return, you'll be happy to know it doesn't have to be that way. Reconciling your bank account leads to more effeciency, more accountability and more accuracy of your books; this, in turn, leads to a happy tax accountant!
blackbook challenges you to reconcile your next bank statement. If you succeed, tell us! If you try and have no idea how to do it, tell us! We can help!!