How to Make Sure Your Records Match the Bank

Written By Sandor .

Your business records and bank statement should regularly be compared.

Start with the bank statement for a complete month. Check each deposit, payment, withdrawal, and fee against your business records.

Look for transactions appearing in the bank that are missing from your records. Common examples include automatic payments, bank fees, interest, and card purchases.

Next, look for items in your records that have not yet appeared in the bank. A check may still be waiting to clear, or a customer payment may not have been deposited.

Also watch for duplicate entries. A purchase may have been entered manually and then added again when it appeared in the bank activity.

When the review is complete, the adjusted balances should agree.

This process helps identify:

  • Missing purchases

  • Missing deposits

  • Duplicate transactions

  • Incorrect amounts

  • Unauthorized activity

Payments recorded in the wrong account

Completing this review every month gives you greater confidence that the information you are using is complete and accurate.

Sandor .
Next

How to Organize Important Business Documents