Many business owners wonder why a monthly bank statement or credit card statement should be reconciled, but it is important to do that!
🌿 You can confirm that all transactions are valid and recorded.
🌿 Any outstanding payments will be noted in your accounting software. This ensures you are not over spending
🌿 Any outstanding checks to deposit can be verified. Did you forget to take it to the bank? Did the bank deposit it in the wrong account? You don’t want this to go on as it will be harder to determine what happened the longer time has passed.
🌿 Any outstanding payments will be noted. Has a vendor not received your payments? Have they credited the wrong account? Don’t let this go on either.
These are the basic reasons why monthly reconciliations are important! You need to know where your money is and make sure you don’t have to address concerns ASAP
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