Here at Proctor & Assocs., we understand that many people get stressed out about taxes and finances. In our experience, it’s often not just the natural anxiety that comes with serious financial matters, but can also include a fear of unknown or unfamiliar scenarios. Our team wants to help give you peace of mind about your financial situation, and part of our effort to do that is to provide information on various aspects of the tax process and general financial literacy. In this article, we’ll be focusing on bank reconciliations and how they work.
Simply put, bank reconciliations are a process by which a person or business matches the items in their own financial records to the corresponding items on their bank statements to identify any discrepancies. Performing bank reconciliations at regular intervals–ideally monthly–will help you keep your records accurate and avoid things like bounced checks or overdraft fees. This process can also help to identify certain types of fraud after the fact, which in turn will help you implement better controls to protect you from it in the future. In addition, if your bank reconciliations show that a certain account has little to no change, you may want to consider transferring the funds to a more active one instead of leaving that money to stagnate. If this sounds like a lot to keep track of, you can turn to our team at Proctor & Assocs. to take care of this process for you.
We at Proctor & Assocs. hope that this information has been helpful to you. If you’re interested in enlisting our bank reconciliation services, just give us a call.