A newsagent recently told me that they reconcile their accounts with their bank account every six months when their accountant does their books. This is crazy. My recommendation is that you reconcile your bank account at least weekly and preferably daily if you bank daily.
By reconcile – and as someone without any accounting training – I mean reconciling all income as recorded in your computer system to your bank statement and your computer accounting records. This work should be done by you or someone you trust but who does not have control of the cash in your business. It does not need to be done by your accountant – despite what they may say.
A newsagent discovered employee theft earlier this year that had gone undetected for several months because they did not regularly reconcile their bank account to daily takings records.
Mark,
thanks for this, I will have to do some further investigation, but we received a call from G&G last week about payment which we had payed on time but the better half forgot to attach the payment details so she forwarded the details back to G&G on day of payment. When she contacted G&G they said yes they had received the payment but Customer service had not passed on this information?
So why did we receive an email dated the 27th about non payment and why have they attached others email addresses.
G&G better have an apology ready tomorrow, but they will not care.
A new low from G&G
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OPPS ATTACHED TO THE WRONG ARTICLE
There are some great bank feed integration features that come with a lit of accounting software. I know that the latest version of MYOB has a bank feed feature that is free and relatively easy to use. Makes reconciling a very quick and simple task.
The frustration is that some newsagents who need to do this will not realise it until they have discovered considerable employee theft.