How often do you reconcile your bank accounts? What about your brokerage accounts? I am working with a business that has neglected their cash and investment accounts for several years…
I only have bank accounts in my businesses, and I seemingly don’t like to keep much money in those accounts. But I reconcile at least weekly and most times more often.
Now this client has multiple cash/bank accounts, and all have a number of signers, or those who authority and can move funds around. These accounts need to be monitored very closely. It’s not a matter of trust, it is a matter of prudence. You don’t want anyone to even be tempted with shenanigans, and a there should be a very ridged oversight of the accounts, that does just that.
This business had multiple accounts, the corporate books and records did not even have all of them listed or are they easily identified. Some had been closed and others opened within different banks and again there was no oversight.
This business is now just finishing up their process of getting everything caught up and brought up to date. I am scheduled to go in and do a detailed check on their progress.
My biggest concerns or maybe fear, it that funds went missing and negligence and time have covered the trails. I could be incorrect, and it is possible that all is right with the world, and all funds are accounted for with no lapses.
But I strongly suggest minimally a weekly reconciliation, if there is fraud in your business account, you have three business days to find it and notify your bank, or you own it, and the funds are lost.