What Bank Reconciliation Actually Means
Bank reconciliation is the process of matching the transactions in your accounting software against what’s actually happened in your bank account, so the two line up exactly. It sounds simple, but it’s one of the most important checks in your whole bookkeeping process — and one of the easiest things to fall behind on.
If your bank feed is connected in Xero or MYOB but nobody’s actually reviewing and matching those transactions, your reports can look complete while quietly being wrong.
Why It Matters More Than It Seems
- Accurate GST — unreconciled transactions often mean GST hasn’t been coded at all, which flows straight into an inaccurate BAS.
- Real cash flow visibility — you can’t trust your profit and loss or cash position if transactions are missing or duplicated.
- Catching errors early — bank fees charged twice, a payment recorded against the wrong invoice, a direct debit that shouldn’t be there — reconciliation is often the first place these show up.
- Fraud and mistake protection — regularly reconciling accounts means unusual transactions get noticed quickly, not months later.
How Often Should It Be Done?
Ideally, bank reconciliation happens weekly or at least monthly, not just before BAS is due. The longer it’s left, the harder it is to remember what a transaction was for, and the more time it takes to sort out.
What We Do
As part of our monthly bookkeeping service, we reconcile your bank and credit card accounts as a matter of course — matching transactions, coding them correctly, and following up on anything unusual. It’s one of the reasons clients move to a monthly retainer instead of trying to keep on top of it themselves.
GoBookaroo provides bookkeeping and BAS preparation support. We are not a registered BAS Agent, Tax Agent or accountant unless stated otherwise, and we’re happy to work alongside your existing accountant or BAS Agent.
Book a free chat if your bank reconciliations have gotten away from you.
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