Many employers have multiple credit cards and more than two bank accounts. This can become very convoluted and end up costing employer excessive amounts of interest during the times where cash flow is limited. In addition to this, bookkeeping costs can become more costly. It is important that these reconciliation processes occur concurrently in order for employers to make wise decisions in properly timing inventory purchases, estimated taxes, personal property taxes, mortgages, loans, and payroll.
Points to Remember in Reconciling
Keep personal transactions separate from the business whenever possible
Personal draw accounts should be used to distinguish personal transactions
Minimize use of credit cards whenever possible to save the interest costs
Use Auto Pay and Bill Pay to reduce check printing and bookkeeping costs
Auditing credit cards and bank accounts is critical for all businesses
Analyzing accounts is important in reviewing misappropriations and duplicate charges
Setup auto payments on credits cards to maintain credit worthiness
Craig's Bookkeeping wants to help you with efficiently running your business and there are many transactions that can be setup automatically using your bank account and/or credit card. This can be done using Auto Pay and/or Bill Pay in which your bank prints and mails checks to specific vendors on specific dates each month. Some banks offer this service for free or at minimal cost, and this can help when vendors do not offer you the option of an automatic debit on a specific date each month. This can help reduce the costs of writing/printing checks and tracking them through reconciliation processes and requires a minimal amount of auditing from Craig's Bookkeeping to ensure that no transactions are duplicated from these services and that they are the correct amounts. Please see the Auto Pay/Bill pays section.