Lynda ArtesaniLegal Accountant and Data Migration Specialist at The Proper Trust

The Importance of Precision in Finance

28 Apr 2025 · 1 min

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In this segment, the speaker stresses the critical need for precision in bookkeeping and accounting. They argue that errors in calculations and inconsistent handling of pooled versus separate accounts can lead to audit failures. The speaker highlights the necessity of mirroring transactions on the books, performing proper three‑way bank reconciliations, and adhering to regulatory requirements. They express concern that many bookkeepers neglect these essential practices, which can result in non‑compliance and unhappy auditors.

Chapters

People make mistakes. They do math wrong. They do. And you have to follow it. It's got to balance. And if it's done as a different style and it's not the whole pooled thing and it's separated out, you have to mirror that on the books because if you're audited, it all comes down to the audit. So you put yourself in a position of being audited and you want to be able to comply with what the regulations are. And if you can't comply and you're trying to, you know, do the quick way, you're going to find out that they're not going to be too happy with you. And that's the problem we have that we're up against is, and I'm always amazed at how many bookkeepers do not do the 3-way bank reconciliation for their clients. Like when we have a client, we ask them, do you have a proper— when was the last proper 3-way that you've had? Don't even know what we're talking about sometimes.