Is Monthly Accounting model really worth it?

Most business accountants are troubled by the fact that a company’s banking and financial accounts may reflect a different balance from the ones on file at any one time. Accounting reconciliation is a method of ensuring that the accounts are in balance. To keep everything in order, you compare monthly transactions from your company’s financial accounts with monthly statements from the banks or financial organizations that support you. It can also benefit your business in the following ways.

5 Ways Accounting Reconciliation Benefit Your Business’ Bottom Line

• Errors in accounting are no longer a problem. Monthly accounting reconciliation is an excellent technique to ensure that your bookkeeping matches what is recorded at your bank or financial institution. It can aid in the detection of faults, which can occur on either side. Finally, it will aid in the elimination of those faults and their prevention in the future.

• Prevents unpleasant surprises from occurring in your account. Let’s say you write a check to a vendor, and the merchant takes months to cash it. Would you even remember it was going to be taken out of your company account? You can keep track of all transactions if you reconcile your account once a month. Even those that may be postponed.

• Maintains the accuracy of your business deposits. Human error can result in bank deposit problems, which can have severe repercussions for your organization and reputation. Imagine being short on funds in a critical account that pays for a percentage of your monthly expenses. It can be avoided by performing a monthly accounting reconciliation. This brings us to our second benefit, which is related to your bills.

• It ensures that your bills are paid. If you have bills and expenses that are withdrawn automatically from any of your accounts, keeping track of all transactions and reconciling balances each month will help you avoid overdrafts and missed payments.

• Finally, you will save money. Account reconciliation is beneficial to your business and profitability since it can help you detect bank fees and other hidden expenses that you may not be aware of. Many of these fees can be eliminated by simply contacting your bank or financial institution, assuming you are aware of their existence.

These are just a few of the advantages of monthly account reconciliation for you and your business.

What counts more when it comes to choosing an accountant: price or value? There are less expensive ways to handle accounting, but managing your company’s money is not one of them. If you opt to work with a monthly accounting firm, you will pay a higher fee, but you will also receive a number of additional benefits that will help your business succeed and profit.

Here are five values that are worth their weight in gold:

1. Saved Business Owner Time

Accounting takes time, whether you do it yourself or have someone else do it for you. Is it better to spend your time keeping your books in order or growing your business? Having a monthly accountant frees up time for you to focus on running your business effectively. Isn’t that why you created your company to begin with?

2. Expert Insight

A competent monthly accounting service will have worked with firms exactly like yours for decades. Your firm will benefit from their experience if you work with them on your finances. Their experience working with clients over many years can help you avoid typical traps and solve financial challenges.  

3. Peace of mind

Leaving your financials in the hands of a reputable accounting firm simplifies your life and relieves you of one more stress. You can relax knowing that your accounting will be done correctly and on schedule, and that you will have access to a seasoned financial professional to answer your questions and provide guidance.

4. Tax Liability Savings

When tax season arrives, your financial partner has your back. They ensure you don’t have any surprises at the end of the year by assisting you in planning ahead for your tax obligations. They also assist you in reducing your tax liability by providing customized tax-saving techniques.

5. Proactive Financial Advice

Unlike annual accounting services, which just offer tax preparation at the end of the year, a monthly accounting service can actually give you advice on how to manage your business more efficiently. Your monthly accountant keeps track of your finances throughout the year and may help you identify trends, make projections, and plan ahead to meet your objectives.  

Value Over Price

You’ll pay more for a monthly accountant than you would for alternative accounting methods, but you get what you pay for. The increased investment of having an experienced eye on your financials on a monthly basis is well worth it because it will help your company become more efficient, organized, and aligned for success.