How often should bank reconciliations of checking accounts be completed?

The recommended frequency for completing bank reconciliations of checking accounts is monthly. Monthly reconciliations allow for the timely identification and correction of discrepancies between the bank statement and your records. This practice ensures that any errors, fraudulent transactions, or outstanding checks can be addressed quickly, which is crucial for maintaining accurate financial records and cash management.

While quarterly, bi-annual, or annual reconciliations can provide a degree of oversight, they may not be frequent enough to catch issues promptly. Monthly reconciliations enhance the accuracy of financial reporting and help in managing cash flow effectively, making it the best practice for organizations. Regular reconciliation also alleviates potential larger discrepancies that could develop over time with less frequent checks.