Bank Reconciliations

In order to have a clear understanding of the cash in your company, it’s absolutely essential to have a knowledgeable bookkeeper manage your bank accounts.  As one of our core services, we are able to provide our clients with a clear view of their bank statements and cash flow to permit them to have better decision making ability when it comes to their business.

Working with small business owners, we’ve come to recognize the importance of cash flow.  Because they typically have lower amounts of capital to work with, remaining vigilantly aware of the exact cash flow position is integral in their day to day management.

Misread receipts, transposed numbers and forgotten entries in the check register are common accounting errors and can easily be rectified.  Unseen mistakes will have a compounding effect month after month and can result in thousands of dollars of differences in your bank balances.

Bank reconciliation can also help identify unauthorized payments, cancelled subscriptions incorrectly billed to you and bank and/or credit card fees which you may not ever realize you are being charged.  We bring these charges to your attention to allow them to be removed.  If not caught early, months may pass without your knowledge and remove your ability to take these charges off your account.

Credit card fraud is extremely common.  The easiest way to see if your credit card has been used without your consent is catching fraudulent charges on your credit card statement.  In addition, if an employee alters or steals a check, it’s often the bank reconciliation process that brings fraud to light.  For this reason, it’s a smart practice to have the bank statements reconciled by someone not responsible for issuing the checks.

When the bank statements are reconciled each month, checks that haven’t been cleared stand out and prompt an investigation as to the cause.  If a payment was lost in the mail, it’s far better to realize it while there is still time to reissue the check before late fees have accrued.  Additionally, a vendor may hold a check for weeks longer before presenting it to the bank.  If you are unaware the payment hasn’t cleared, it could hit at an inopportune time, perhaps long after you’ve forgotten it was written.  

RDM Business Solutions specializes in outsourced accounting including bank reconciliations.  If you think this is a service that will help your small to mid-sized business, please contact us today for a free consultation about how we can help.