By reconciling your bank statement, you are ensuring that all previous processing is correct or if there are any irregularities such as incorrectly entered amounts and/or duplicated entries in COSTAR. It confirms that your COSTAR Bank Financials match that of your bank account(s) and is vital in ensuring your tax records are up to date.
Here are four reasons why you should keep on top of your Bank Reconciliation each month.
1. Finding errors
Reconciling your bank statement enables you to see if there are any irregularities. These may include keying errors on your EFTPOS machine or duplicate entries.
To reduce keying errors and make end-of-day reconciliation simple and stress free, check out our integration with Tyro EFTPOS.
2. Improve the accuracy of Financial Statements
Ensure that your COSTAR Bank Financials match those from your bank. Find and match all of the entries listed on your bank statement in the Outstanding Bank Items list in COSTAR. Work sequentially from the bank statement marking the Items off as you reconcile them in COSTAR. You must reconcile each bank statement in date order, so do them as often as you can get the statement from your bank.
By utilising Day End reports, you can easily see the individual transactions that make up the EFTPOS or Cash/Cheque deposit. Create additional reports of the remaining Outstanding Bank Items and a report of what you have reconciled – the Cleared Bank Items.
3. Monitor company performance
Ensure that your inflow of cash covers your outgoing costs. With an up-to-date bank rec, you can identify, validate, and enter all the bank deposits and withdrawals as presented on your bank statement.
4. Minimise theft
Along with your monthly inventory control, regular reconciliation, balancing the till every day and reviewing any errors minimises the opportunity for theft and will help identify any financial irregularities.
For a step-by-step guide on how to reconcile your bank statement, access our help file here. Alternatively, if you can’t find what you are looking for, or need more detailed assistance, our Support team is standing by and ready for your query by phone, email or online.