Bank Statements

Bank Statements

I wanted to take a moment to touch upon the subject of providing your bookkeeper or accountant with the bank statement for the monthly reconciliation.

Reconciliation is an important step in bookkeeping.  It allows the bookkeeper to verify that all of the transactions were properly recorded, not only in your books but at the bank as well.  It’s important to find errors in the bank statement immediately as, after 30 days, if it isn’t disputed it is deemed to be correct.

Some clients will log into their bank account on-line, pull up the list of transactions for the past 30 days, print it and hand that to the bookkeeper.  That’s fine for showing us what transactions occurred but it’s missing a couple of pieces of information needed for the reconciliation; the opening balance for the month, the end balance, it may not show the finance charges and, most importantly, it does not include the statement date.

Instead, you need to locate the link on your account page that will allow you to view Documents or Statements.  The statements are stored in .pdf format which means you don’t even have to print it out.  Simply save the statement .pdf to your computer, then you can e-mail the file to the bookkeeper or copy it to a USB stick and hand it to them.  Of course, you can always print it out and pass along the printout, but why waste paper and ink (which costs money).

Although banks are now required to keep your statements on-line for 7 years, it’s still a good practice to download the statement each month and store it in your computer.  For one thing, it makes it easier to look at it than logging into the website each time.  For another thing, if something prevents you from accessing the bank’s website you still have access to your statements.

© Rigel Chiokis 2012 - 2017