Importance of Bank Reconciliation in the Restaurant Business

A solid bottom line in the restaurant business depends on impeccable bookkeeping. One step in this process is bank reconciliation, which helps to ensure accuracy by matching the financial records of the business with the bank transactions. Below are some answers to the most frequently asked questions about this process and why it pays to use software designed for this specific function.

How is Reconciliation Performed?

When comparing a restaurant’s bank statement balance with cleared checks, credit card payments, and other financials listed in bookkeeping records, this is the process of reconciliation. The goal is to identify any differences, unusual activities, or missing transactions. In the end, everything should be accounted for.

How Often Should This be Done?

Bank reconciliation should be done a few days after the end of the month, each month. This allows transactions enough time for processing and clearance. It also helps identify any outstanding expenses or payments that have not been logged into the restaurant’s bookkeeping records but were cleared by the bank. Consistent tracking also helps to maintain a financial paper trail. This is something that one shouldn’t put off, as it needs to be handled consistently each month.

What are Common Discrepancies?

In some cases, the bank may not have cleared checks that were written from the account or to the business. This is even more so when the funds were issued to or from an out of state entity or on weekends or holidays. In addition, the bank may have charged additional fees for printing checks or completing the transfer, which there might not be a record of on your end.

Benefits of Reconciliation

Bank reconciliation helps maintain consistent management over a company’s cash flow and reduces the risk of overcharging an account. This is also a way to ensure that all monies are accounted for, especially when the money changes hands several times within an organization.

Given the importance of bank reconciliation, partnering with the professionals at RSI will help ensure that all of the record-keeping is in order within a business. They have been an industry leader in hospitality bookkeeping and accounting for more than 40 years. Their clients average an 11{04849f042c7cb443b7662682bd07cdfba2107aae915afd40cfa4fe5ab1f7731b} higher profit than the industry average. To get more information, visit