It proves to me yet again that if you do your bank reconciliation every month, you find issues before they become a problem. Leaving everything to the year end is not a good idea. Clients don’t seem to understand how important a bank rec is until the year end arrives and they have a big list of queries from me as to why payments and receipts where never entered in their accounts system. Don’t be concerned about the word bank reconciliation, just think logically. If you made a payment you need to record it somewhere, you cannot just leave it out. Imagine if your bank decided now and again to not record money coming into your bank account, you would think this crazy, but yet you do it every day.
Bank rec = entering everything, all payments and all receipts as they happen and not wait to the end of your financial year.