Why Reconcile Your Bank Statement?
You’ve had a busy day so why add to it by trying to reconcile your bank statement? All of your patients have been seen, you’ve called in prescriptions, finished your dictation and entered your charges, now you just want to relax. However, you can’t truly relax because you know you should attempt to reconcile your bank statement. When there are so many important things to do to take care of your patients and keep your practice running, reconciling your bank statement just seems to fall by the wayside. After all, you haven’t done it for months and nothing bad has happened, so why start now?
If this sounds familiar, you aren’t alone but you could be losing hundreds, maybe even thousands of dollars. You work far too hard to just let this money go missing. Proper reconciliation of bank statements is vital. Even if you don’t have an accountant on staff, this procedure must be done monthly.
Everyone makes mistakes, including insurance carriers, clearinghouses, billing companies, staff and banks. Just because a deposit is reported to be done doesn’t mean that it was applied correctly. And, there are far too many instances where practices fall victim to embezzlement. As a business owner, you must take the time to reconcile your bank statement. Even if you delegate this task, you must see an overview of the results. Keeping an eye on bank statements can help you keep your finger on the pulse of the company.
Regardless of whether you are using a consultant, accountant, or outsourcing to a billing company you should be getting a detailed reconciliation report. If you aren’t getting such a report, ask for one. This report will allow you to match reported daily deposits directly to your bank statement. All discrepancies, no matter how big or small, must be researched and resolved.
If this is done monthly, you can rest easy knowing every penny that is owed to you has been collected and deposited to your account–not someone else’s account!