Working in the business industry for many years, I have come across many small businesses who consistently fail to balance their bank accounts every month.
As someone who has always balanced their own personal and business bank accounts on a regular basis, I struggle to understand why any business believes tracking their bank activity is not worthy of their time.
Here are 3 simple reasons why you need to maintain a regular check on your business bank accounts:
- Catch Possible Mistakes
Human mistakes are so easily made when it comes to accounting, bookkeeping, and admin. Numbers can be transposed, immediately throwing the balance off. By balancing your bank account to your bank statement, you can catch such errors and deal with them swiftly, stopping them from becoming more significant problems later on.
Additionally, banks can and do make mistakes – it has been known! Once again, regular checks can also keep an eye on this as an extra cautionary measure.
- Spot Identify Theft
With so many fraudulent cases all over the world, we all need to be on guard when it comes to our financial information. Sometimes, the only way we spot some of these antics is when we come to look at our bank balance!
By regularly balancing your account you have the opportunity to pick up on any discrepancies early on and catch such activity, therefore working in the period of time to file a report where needed.
- Delayed Automatic Payments Are Highlighted
If you have several automated payments due out every month, and there are cases where your payment doesn’t go through that month, you could end up with further problems, particularly regarding insurance and medical payments. Scanning your bank account regularly allows you to spot any delays and deal with the relevant company accordingly.