Bank Reconciliation is the process of comparing and reconciling accounting records with the records presented in bank statements. Sometimes discrepancies between the records might occur due to timing differences of when the data is recorded in the accounting and in the bank books. The purpose of bank reconciliation is to check whether the discrepancies are due to timing rather than error. The bookkeepers at Guardian Bookkeeping Services™ will reconcile your accounts with your bank for you.
When you allow Guardian™ Bookkeeping to reconcile your credit card statements, you are getting a professional to analyze your credit card statements and your books. The benefits of having your credit card statements reconciled are up to date books so you know where your company’s cash flow stands. We also monitor your credit cards for indications of identity theft, fraud and abuse.
We also reconcile outstanding checks that have been sent out but not yet cashed. We reconcile the amounts of those checks as well, which decreases the amounts available for your company to spend.
We check all of our clients’ bank accounts for errors that could possibly affect your account. Bank errors could be anything that is recorded incorrectly or omitted from your company’s bank statement. We will advise you of any bank errors that are detected.
Bank Service Charges
Bank services charges should be reconciled into your company books as well. Banks will charge for overdrafts, stop payments on checks, and account maintenance fees. The bank could possibly take the money out of your accounts without any notification. These changes need to be entered into your company books.
If your company uses your bank to collect notes receivables, the bank will immediately deduct their fees from your account. If your books do not balance, or do not reflect the processing fees, it will cause a discrepancy between what your company accounts show and what the bank shows.
The bank always includes interest earned in your bank statements (on interest bearing accounts), but the interest still needs to be reconciled.