Bank Reconciliation

So you may be deciding on taking on a bookkeeper.  The problem is that you don't know how to check the quality of the work otherwise you'd probably do it yourself.  So how do you find someone with the talent you require, and at the same time know they're doing a quality job?

The most important thing to check is whether the new bookkeeper is doing a bank reconciliation.  The bank reconciliation is THE task that needs to be completed each time you want to review the financials.  It ensures that the cash transactions entered in the accounting system is identical to the cash transactions appearing on the bank statement.  What the hell does this mean?  This diagram will assist

For the accounting system to be reliable, the bank reconciliation report must always prove that the cash balance shown on the accounting system is identical to what is shown on the bank statement as illustrated above.  Only then will you know that the data entry has been correct.

Why have a bookkeeper?

Companies making a profit have one.

Robert Kiyosaki endorses it.

The need will only intensify to have one as the world becomes monetized and global.

Why have a bookkeeper?


Because without one means you are not keeping score, and if you are keeping score without one, it means your time is worth less than the cost of a bookkeeper. Ie. You shouldn't be in business.

The biggest issue stopping most business owners from hiring a bookkeeper is TRUST.

• Trust that the information will be kept confidential
• Trust that there will be no theft
• Trust that the job will be done correctly
• Trust that the job will be done efficiently

A friend of mine recently told me that the most common why deals, he was involved with, were agreed upon was with a face to face hand shake.

Nothing beats first impressions. Hiring a bookkeeper is no exception.

So over the next few posts, assuming you take the plunge and hire a bookkeeper, I will provide tools and knowledge to ensure that your trust in your bookkeeper is not misplaced.