You own a small plumbing company that has an in-house bookkeeper. Since you are busy at the various job sites, the bookkeeper’s responsibilities include billing and collections. She sends out invoices and statements to customers and processes payments received in person and by mail. She also prepares the monthly bank reconciliations.
Required:
a. Why is it important that you review the bank reconciliation each month?
b. What kind of information should you be looking at when you do this?