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Watch Your Cashflow

Reconciling your accounts each month will help identify data entry errors. It’s a much easier task to control if it’s done regularly, rather than left until the end of the quarter or year.

Errors such as missing transactions (transactions that appear on your bank statement but haven’t been entered in your accounting software) and incorrectly recorded transactions are quite common and if they’re not rectified along the way, they can cause all sorts of problems when it comes to tax time.

At the end of the financial year, the data you’ve entered into your accounting software, be it MYOB or Xero, is the information your accountant uses to prepare your annual tax return.

Reconciling your bank accounts each month also means that your financial statements accurately reflect your sales and expense activities, helping you with budgeting, forward planning and making good decisions.

Click here to learn more about how you can move your small business in the right direction with confidence by outsourcing your bank accounts reconciliation to us.

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