For small business owners, bank reconciliation is an important aspect. Reconciling your bank statement entails comparing your balances and business transactions with the bank’s balances and transactions. This is done to make sure your business and the bank’s recorded balance match up. As a provider of accounting and tax services, we will discuss the importance of bank reconciliation:

• Confirm the accuracy of financial statements.
  Transposed numbers, forgotten entries, and misread receipts in the check register are common accounting errors that can be rectified. However, mistakes that are undetected each month can snowball until you are left with a registered balance that is hundreds or thousands of your bank balance. Bookkeeping can catch errors and confirm the accuracy of your financial statements.
• Verify your cash flow.
  Small business owners usually have lower amounts of capital to work with. Hence, it’s important to stay aware of the organization’s exact cash flow position. By using accounting services in Cherry Hill, New Jersey, they can prioritize monthly reconciliations and keep them up to date.
• Save money and prevent fraud.
  Reconciling statements each month helps identify credit card fees and subscriptions business owners may want to cancel. Reconciling these statements can prevent months of payments that are unlikely to be refunded. Monthly reconciliation also prevents fraud by checking each charge made on the company’s credit card. The sooner the errant charge is identified and reported, the sooner the damage from fraud is minimized.

TAKEOVER Accounting & Consulting LLC is your trusted partner in helping you achieve your financial goals. We offer exceptional accounting and consultation services in New Jersey to meet your accounting needs. Set an appointment with us to find out more.