For businesses it is very important to have your accounts reconciled on a regular basis. This includes bank accounts, assets, credit cards, and liabilities. You will want to make sure that the money you spend matches the amount leaving the bank account and in reverse, the income you receive matches what is in the bank account. This also applies to the other items on the balance sheet. You will want to make sure that the general ledger figures agree to the corresponding statements.
By performing reconciliations, you will be able to identify errors and make corrections ensuring the accuracy of the financial statements. Reconciling accounts will also better prepare you for an audit. Accurate financial statements are necessary to prepare your tax return. Having all the accounts reconciled will create a foundation for evaluating business performance and will allow you to make more informed business decisions.
This is a detailed process and may be time consuming, but it is time well spent. If you feel that your time is better spent on your business, as most small business owners do, this is a perfect scenario for hiring an outsourced bookkeeper.