If an auditor were to knock on your door tomorrow, what would you do? (running away is not an option!) What if all you had to do is hand over your file of monthly three-way reconciliation reports and be on your way? It can be just that easy!
Not only should monthly reconciliation be completed for each bank account you have, it is an absolute requirement for your trust accounts. Bank reconciliation is just like balancing your checkbook. You want to be sure that your record and the bank’s record match, taking into consideration any items that have not cleared. If the records don’t match, you can find and fix any issues right away. Keeping on top of this creates incredible accuracy with your books, and no surprises come audit time. Do you want to risk losing your license to practice? Didn’t think so!
And don’t be scared! Reconciling is actually a very simple process, and will train you to be more careful entering transactions down the line. Watch the following video clip which will walk you through bank reconciliation in CosmoLex
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