Why are Bank Reconciliations Important?
When the bank sends your business a statement, you may be surprised that a financial consultant will want to go over it and check off all of the line items against your own records. After all, isn't the statement a list of all of the expenses and income sources that came in for the month?
The fact is that bank reconciliations are needed, and for a variety of reasons. One is that, as with personal bank accounts, not all of your outstanding checks may have come through at the time of printing. By reconciling the statement against your books, your financial consultant is able to discover these outlying charges and prevent overdrafts.
The other reason for bank reconciliations is that you can find money that is listed on the statement, but that for some reason, was never entered into your books. This ensures that you gain the full use of the funds that came in from your accounts receivable and other sources of income. If these deposits aren't entered into the books properly, you might never realize that you have them.
Of course, this isn't the only thing a financial consultant will do for you. Once these and other basic bookkeeping tasks are taken care of, you'll have a clear picture of your finances. Then the consultant can advise you on the best ways to invest your money, cut expenses, meet obligations, and more. This allows you to use your money in the most efficient way so that your business remains as healthy as possible.
To get started with a financial consultant and bookkeeper in Canada, contact TrustWealthy today. We'll be glad to help you take care of all of your company's financial tasks.