Feb 052008
The point of carrying out a bank reconciliation is to check that nothing has been missed from the business’s records and also to ensure that there have been no bank errors.
A business’s cash book will rarely agree to the bank statement and it can be easy to miss transactions, such as direct debit payments if a bank reconciliation is not done. Similarly, banks sometimes make errors too which may otherwise go unnoticed.
Bank reconciliation is a standard part of bookkeeping. If you have not done a bank reconciliation as part of your bookkeeping, your accountant’s fees will almost certainly be much higher. Many accountants will insist on a bank reconciliation having been done prior to their doing your statutory accounts.
