A number of property managers routinely toss bank reconciliations in the ‘to do’ pile, leaving them sit for a month – or three. The real downside of that scenario is that while those bank statements sit in a pile, you’re totally unaware of any bank charges, fees, or incorrectly posted items that have been deducted from your account.
Remember, a true bank balance will not be known until your bank statement is reconciled. It’s also important to remember that banks process thousands of transactions every night, so while the odds are pretty good that check and transaction amounts will be accurately entered, it’s not a given. Banks make mistakes too, but you won’t know if you don’t reconcile bank transactions with your GL account.
There are those who believe that they can simply glance at a statement and determine if it’s accurate. We disagree. While a bank balance may fit into the parameters of what you think is correct, until each transaction is examined for accuracy, that bank balance should be suspect.