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Edmonton bookkeeping says that one of the most important aspects of doing it I bank reconciliation properly is to do it properly and do not rush through it. An entrepreneur that rushes through their financial information might rush through other aspects of their business, which could be indicative of deeper problems. As Michael Gerber, who is the author of the business book the E myth has said about doing things well, “the work we do is a reflection of who we are. If we are sloppy at it, it is because we are sloppy inside. If we are late at it, it is because we are late inside. If we’re bored by it is because were board inside, with ourselves, not with work. The most menial work can be a piece of art when done by an artist. So the job here is not outside of ourselves, but inside of ourselves. How we do our work becomes a mirror of how we are inside.”

It is not difficult or hard to do proper bank reconciliation, but doing it properly and checking for errors can ensure that the business finances are in order says Edmonton bookkeeping. While most reasons why this is very important is because when entrepreneurs have the most accurate financial information available, they can be guided towards the best business decisions. Since industry Canada says that 50% of all Canadian entrepreneurs fail, 29% of those entrepreneurs say the reason why they fail is that they ran out of money. By taking the time to verify the accuracy of the bank reconciliations, business owners can be sure that they are safeguarding their financial statements so that they are as accurate as possible and they can make the best decisions they can that can have them avoid running out of money in their business.

There are some basic things that entrepreneurs need in order to do a proper bank reconciliation, in addition to having an actual business bank account, entrepreneurs also need the bank statements, any checks or check stubs that they have written in that period and a copy of the previous month’s reconciliation. Edmonton bookkeeping says that entrepreneurs need to compare last month’s ending balance with the starting balance of the current month. The reason why this is important is to verify that the business owner is starting off the reconciliation with the right balance. This important to check is vital because entrepreneurs will not be able to end up with the proper balance at the end if they do not start with the right balance beginning.

Taking the time to have all of the proper information and doing the bank reconciliation carefully, can ensure the accuracy of their reports that they end up with. Edmonton bookkeeping says that this is vital to ensuring the accuracy of their financial statements moving forward. Taking the time to do it well, can make all the difference to entrepreneurs and all of the business decisions that they make.

Entrepreneurs should understand that they do not need a bunch of fancy software in order to properly reconcile their bank account says Edmonton bookkeeping. Many bookkeepers and accountants like using the software QuickBooks online, but as long as entrepreneurs are prudent, they do not need fancy software, even just an Excel spreadsheet can be a good enough tool for them to do a proper bank reconciliation once they know-how.

However, business owners can use technology significantly in helping them reconcile their bank account. For example, QuickBooks Online has a feature built into it that can allow entrepreneurs to link their bank information directly up to the software so that all transactions that happen in that time period can automatically input into the software. Edmonton bookkeeping says that while this is not a hundred percent fail-safe, it can save a lot of time, even after an entrepreneur takes the time to verify the accuracy of the information. By utilizing technology in their bank reconciliation, entrepreneurs can spend more time verifying the accuracy of the information instead of more of their time on straight data entry.

Many entrepreneurs may question why they should use the automatic bank to feed feature in QuickBooks online says Edmonton bookkeeping. The reason why they wonder that, is because if it is not a hundred percent accurate, business owners may wonder why it should be even used at all. The biggest reason for this is because it can speed up the process significantly as well as remove human error from the equation. Edmonton bookkeeping says that even with checking the accuracy of the information, it is much faster to use the automatic bank feed.

Once a business owner has done their bank reconciliation, Edmonton bookkeeping says the business owner should understand all of the different aspects of the reconciliation report that they will end up with. They will see the beginning balance, cleared transactions, incoming deposits, ending balance, uncleared balance and registered balances. Once a business owner has verified all of that information is included in the reconciliation report, they can want to the final and most important step of verifying the accuracy of the information.

Verifying the accuracy of the information at the end is extremely important says Edmonton bookkeeping. The reason is that even if an entrepreneur is as careful as possible doing the reconciliation if they are not ensuring the accuracy of the report at the end, they could be missing vital errors that could end up making the accuracy of the information be incorrect matter how carefully work. In order to end up with the best reconciliation possible, so that they can make better financial decisions such as knowing how much money they have in their business so they can spend it properly, entrepreneurs should be finishing the reports by verifying the accuracy of the information. Once they have verified the accuracy of the information, they know that they can use that report in order to know how much money they have in their business should they want to make purchases, pay their staff or take dividends out of their business.