Over the next Several Weeks we will be posting a new and different one-minute video providing business tips and instructional commentary for small business owners. These tips will range from key metrics to consider to the importance of Business and Cash Flow Forecasting.
I am a big advocate of daily bank reconciliations. It only takes 5 minutes. Today there are too many automatic debits and debit card transactions that change bank balances constantly. With all of these additional hits there is too much room for error and with cash being so tight these days it can cause a chain reaction of bounced checks not to mention it helps cut down employee theft.
My name is Michael Barbarita from Next Step CFO providing outsourced CFO Services with your know your numbers minute.
One time I had a client where the Mass Dept of Revenue hit his bank account 3 times for one sales tax bill of $5,000. If daily bank reconciliations were not done many important checks would have bounced, but since we noticed it right away through daily bank reconciliations we nipped the problem in the bud.
And remember, the most successful business owners know their numbers.