When Your Accounts are not Reconciled, Errors Get Worse
A transaction missed in January becomes a mystery by April. By the time your tax professional sees the books, that mystery has turned into a cleanup job that costs real money to untangle. Conducting bank and credit card reconciliations are the key to ending this expensive problem. Robert G. Neumann Accounting Services has been doing this work since 2007, and the pattern holds: businesses that reconcile accounts every month spend far less at tax time than those that let it slide.
What Our Bank and Credit Card Reconciliation Services Cover Each Month
Reconciling your bank and credit card accounts simply means making sure that the numbers on your books match the monthly statements from your financial institutions. The statements and your books have to agree. If they do not, we find out why and correct the mistakes before discrepancies can carry over into the following month. This reconciliation process also makes sure that your books are accurate and ready for tax time. If your books are behind, our
catch-up bookkeeping service gets everything current before we move into monthly reconciliation.
Why Monthly Reconciliation Matters (Not Just at Year-End)
Errors caught early are easy to fix. The same errors found at year-end are not. Your tax professional charges by the hour, and sorting through twelve months of unreconciled transactions is a slow job. Monthly reconciliations avoid a potential tax-season problem.
Reconciling monthly also catches fraud and unauthorized charges while they are still recent. If someone puts an unauthorized charge on a company card, it shows up in the same month it took place. Discovering these charges eleven months later means a much more difficult conversation with your bank and, in some cases, an unrecoverable loss.
The third reason to reconcile accounts monthly is defensibility. If the IRS or your bank asks to see your records, reconciled accounting records backed by matching statements are clean and verifiable. Unreconciled books are not. Connecting bank reconciliation services to your
monthly bookkeeping routine means your
financial statements reflect numbers you can confidently stand behind.
Ready to Get Your Accounts Squared Away?
Call (510) 523-3368 or email inbox@rgnaccounting.com to schedule a free initial consultation. There is no commitment. Robert reviews the scope of work and provides a written proposal before beginning any reconciliations. To get started, visit our contact page.