HELPING YOU MOVE TO THE RIGHT DIRECTION
Choosing the right accountant for you could be one of the biggest decision you can make in your life.
An accountant can help you with any one of your life's major events. From having a new child
to dealing with a death of a loved one; from getting married to getting a divorce; from buying
a home to selling one; or from forming a new business to dissolving one.
A good accountant can be a good partner to help you make these events a better one. A good
accountant can help you save some of your hard-earned dollars and can make your business
and personal endeavors a more successful one.
Ladinez & Company, PC is a CPA firm located in the city Torrance, California. We provide services in income tax return preparations, payroll, bookkeeping, and business consulting. We are tax accountants, tax preparers, bookkeepers, payroll service providers, and business consultants. Our office is within a comfortable driving distance from the beach cities, such as Redondo Beach, Manhattan Beach, Hermosa Beach, El Segundo, Long Beach, San Pedro, and Rancho Palos Verdes. We are also within a driving distance from Los Angles city and Orange County.
Services
Why Is Bank Reconciliation Necessary?
Have you ever tried doing bank reconciliation, also known as bank recon or bank rec? Did you find it tedious or quite confusing? What is the meaning of bank reconciliation and what is its purpose?
Details of cash receipts and cash disbursements are summarized in the general ledger which is the company’s book records. At the end of the month we normally receive bank statements showing the details of deposits, withdrawals, and checks that cleared in the bank records. Usually, there are discrepancies between the books and the bank statements. An example of such discrepancies is checks written in one month but cleared in the bank in the following month. Another is bank service fees which we find out only when we see the bank statement.
The purpose of doing the bank reconciliation is to verify that all transactions in the company’s books tally with those of the bank statements. This avoids duplication and omission of transactions in your books. Bank reconciliation is also good for identification of errors or fraud because cash is the most vulnerable asset of the company and is oftentimes prone to theft. Therefore bank reconciliation is a control mechanism to avoid cash irregularity such as unauthorized withdrawals. Policy of separation of duties must be implemented – that is, the person who does the bank reconciliation cannot be the same person who handles cash.
If you are a small business owner and you are the only one doing all of the handling of cash, recording of transactions, and bank reconciliation, then you might consider this task tedious and time consuming, especially, when you have many of cash transactions.
In order to avoid these pitfalls, you must be organized first before doing the bank reconciliation. You must collect all the needed information from the books like general ledgers, cash receipts, cash disbursements, journal registers, deposit slips, vouchers and complete bank statements among others. Another tip is to do it on a regular basis, such as monthly or weekly and chronologically. If you suspect that there is some cash irregularity, then daily basis would be most appropriate.CPA Firm, Tax Preparers, Accountants, Bookkeepers, Payroll & Business Consultants in Torrance, CA
Our CPA firm is based in the City of Torrance, CA. We provide tax, accounting, and business services to individuals and business. The 2010 United States Census reported that Torrance had a diverse population with (51.1%) White, (34.5%) Asian, (2.7%) African American, (0.4%) Native American, (0.4%) Pacific Islander, (5.4%) from other races, and (5.5%) from two or more races. Hispanics or Latinos of any races were 23,440 persons (16.1%), while non-Hispanic whites formed 42.3% of the population. Our CPA firm understands and accommodates the needs of these diverse taxpayers.
We are a CPA firm, tax preparers, tax accountants, bookkeepers, payroll service providers, business managers and consultants based in Torrance, CA, near Los Angeles, Long Beach, and OC. And we serve the entire U.S.
Other facts about Torrance:
Torrance’s economy is majorly supported by big companies, such as Honda, Exxon Mobil Refinery, Allied Signal Aerospace, and others. The ExxonMobil refinery in the north end of the Torrance is responsible for much of Southern California's gasoline supply. Torrance was also an important hub and shop site of the Pacific Electric Railway.
Torrance was originally part of the Tongva Native American homeland for thousands of years. In 1784 the Spanish land grant for Rancho San Pedro, in the upper Las Californias Province of New Spain and encompassing present day Torrance, was issued to Juan Jose Dominguez by King Carlos III—the Spanish Empire.vIt was later divided in 1846 with Governor Pío Pico granting Rancho de los Palos Verdes to José Loreto and Juan Capistrano Sepulveda, in the Alta California territory of independent Mexico.
