One of the most highly sought-after bookkeeper services is Monthly Bank Reconciliations. Largely, this is a process that involves matching the financial records of the business with that of the banks. This process aims to uncover discrepancies, which in turn might represent fraud or error. The discrepancies can be minor – like a simple number being misreported, or something major like a large amount simply missing from the bank records. No matter what the discrepancy is, it does not bode well for the organization’s long-term health. In the worst-case scenario, an IRS Audit might just declare such discrepancies as a motivated fraud, and shut your business down!
To avoid such a case, it’s best to consider monthly bank reconciliations, especially conducted by an expert San Jose bookkeeper. Since this is an industry-trained expert going through your accounts, you can rest easy knowing that no discrepancy will be missed. In a larger sense, this process can avoid much potential long-term pain…
- Identify Lost Checks, Deposits, and Unauthorized Transactions
Did you feel that a check should’ve reached the bank but didn’t? Or maybe there’s an unexplained withdrawal that you had no idea about? The reconciliation process tends to uncover many such innocent discrepancies that would’ve gone unnoticed. A bookkeeper thus focuses on reviewing bank statements and matching them against the business records to uncover such issues. Based on this process, corrective action can be taken.
- Detect and Prevent Excess Bank Charges
Of course, it might not always be an innocent mistake or an elaborate fraud, but a simple bank fee that leads to unknown costs and concerns. Banks do levy many upfront costs and fees for their services. These charges may also increase as the business grows. Unfortunately, many are not always aware of these charges. Your bookkeeper can analyze the fee structure, compare them with the initially agreed terms, and negotiate for a change!
- Defense Against Embezzlement
Embezzlement, even suspicion of it, is known to bring strong businesses down to their knees. Since embezzlement also risks investors’ money, the IRS is quick to levy heavy penalties on organizations that fail to detect this in their financial records. Bookkeepers thus focus on implementing various controls that help monitor and restrict access to financial information. Additionally, monthly reconciliations can also catch any early attempts to embezzle!
- Healthier Cash Flow
Cash-Flow Positive might be a dream for many businesses, but it can become a reality for you! A monthly reconciliation uncovers deep insights into how the business is making money, and where that money is being spent. This analysis can help you more confidently decide where essential capital should be deployed. A bookkeeper’s cash flow statement can guide this process, along with an accurate budgeting and forecast to potentially identify the next steps for the business to succeed!
Bookkeepers are experts in what they do. They have an eye for financial detail, and can thus immediately pick out a number out of place – no matter how small of a discrepancy it is. Identifying the discrepancy can then help identify the next steps. Was it a simple error, or is there a larger error at play? When you’re aware of these facts, you’re in a healthy place to track down the source and fix the issue before it becomes a larger concern. Monthly reconciliations are essential if you desire peace of mind!
By ensuring you have healthy finances in your business each month, you know that your business can afford to make moves and establish a presence in the market! So don’t wait, engage the services of a professional bookkeeper today!
