Question

What are 3 important reasons to reconcile bank and credit card accounts at set dates?

Answer 1

The process of bank and credit card accounts reconciliation involves matching of business accounting records balances to the information mentioned on a bank statement.

Importance of Reconciliation:

1. It is helpful in indentification of any unusual transactions. In case your accounts are handled by somebody else, reconciliation at the end of the day can help you assess all the outsourced transactions.
2. It can be used to identify any fraud or accounting errors. In this technological advanced world, frauds can happen without your knowledge. Thus, reconciling of accounts can help you check any discrepancy in records.
3. It ensures that individuals are able manage their cash flow. This enable the individual to manage their savings and expenditure by staying aware of the cash flow in accounts.

Thus, bank and credit card accounts must be reconciled as it ensures your safety net with respect to unwarranted transactions and/or frauds.

Answer 2

Explanation:

Three Important reasons to Reconcile Bank and Credit Card Accounts is:

• To verify transactions have correct date assigned to them.
• To verify that all transactions have been recorded for a period.
• To verify that previously reconciled transactions have not been changed since the reconciliation.