How frequently should a bank statement typically be reconciled?

Reconciling a bank statement on a monthly basis is essential for maintaining accurate financial records in a dental office. This practice allows the office to identify discrepancies between the bank's records and the office's own bookkeeping. By reviewing transactions, such as deposits, withdrawals, and fees on a monthly basis, the office can ensure that all financial activities are accurately logged. Regular reconciliation helps catch errors or fraudulent activities early, thereby safeguarding the office's finances.

A monthly reconciliation aligns with standard accounting practices, enabling the dental office to keep up-to-date records, stay organized, and prepare for the upcoming financial periods, including tax season. This frequency fosters a proactive approach to financial management, allowing for timely adjustments and clearer insights into the financial health of the practice. Additionally, some might argue for more frequent reconciliation, but monthly provides a balanced approach that is practical for most dental offices.