Monthly Allocations: Why do I need bank statements when my accounting software has bank feeds?
At Business Wellness Hub, we ask our clients to do Monthly Allocations including sending their bank statements each month to us for reconciling. We could do a whole blog post just on this (and likely will in the future!), BUT the purpose of this Blog is to detail one of our most common questions; “Why do you need a copy of the bank statements when our accounting software has bank feeds?”.
And the simplest answer is we need to verify that all bank feeds have arrived. Sometimes a day can be missed, or duplicates appear and these need to be corrected to not only ensure accurate records at BAS time but to ensure the business decisions that you make are backed by accurate data.
By reconciling the feeds to the bank statement, we can confirm the data is accurate.
At BAS time, having missing information on your BAS may mean you are not reporting your GST correctly, and no one wants to hear about this during an audit!
At Business Wellness Hub (BWHub for short), we recommend that you do your business financial allocations once a month and ask our clients to provide us with monthly Bank Statements by the 8th day of the following month. This allows us to reconcile the financial data each month, making BAS time far simpler.
What if my bank does not give me a bank statement each month?
But what if my bank won't provide monthly bank statements? If you have a business bank account, you can ask for a monthly bank statement, and they will be able to change the cycle.
It is preferable to get the statements for the whole month. Often you will receive a statement for a monthly cycle from when the bank account was opened. The bank should change this to run from the 1st of the month to the last day.
If this is still not possible, you can access this information through internet banking. However, what is essential is to ensure the report you run has a running balance down the side to make it easier for us to do the bank reconciliation.
If you would like to know more, please do not hesitate to get in contact with us
Via email at [email protected]
Via phone at 0412 765 507
Or on Facebook, Instagram, LinkedIn or YouTube (links in the side bar -->)
As always, we hope this information has been helpful to you and look forward to supporting you further in the future!
-The BWHub Team
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