Since I first reconciled a bank statement on a computer in 1988, I have completely eliminated paper reconciliations from my life. To perform a paper reconciliation, one must find last month’s reconciliation, print out a G/L transaction listing of the cash account, and obtain the current bank statement to get a new list of outstanding items. Finally, the statement balance must be walked to the bank balance and any items on the G/L that are not already there must be posted. Too many moving parts!
By contrast, we have one Central Texas client who reconciles four bank accounts in thirty minutes by using Sage Accpac ERP Bank Services and the OFX file downloaded from the client company’s banking portal. The payroll account alone has 475 new items every month. Taking a mere thirty minutes to reconcile four bank accounts certainly justifies setting up the system and learning the process. Why doesn’t everyone do it?
- Brian Terrell, CPA and Managing Partner