Implications for not using bank reconciliation - (my personal banking is mixed with my business)

[Gyroscope]

I am a sole trader working in a service industry. I don't have a lot of expenses and I don't run seperate business bank accounts so all my personal expenses are mingled in with my business ones and make up the majority of the transactions in my accounts.  I use personal banking software to reconcile the bank accounts seperate to my business software.

I have just purchased account right. I intend on manually entering my business spending into AR (using recurring payments for the regular ones) and using the invoicing and BAS reporting features.  But I am not planning on using the bank reconciliation features.  Is there any issues with doing that?  All I can see that will happen is that the bank account balances will just continue to accumalate over time but these don't really affect any of the actual important business accounting that needs to be done right?

[Marilyn · Accepted solution]

Good morning

I personally can't see any problems in doing your business work this way.  Would check to see if your accountant is happy though.

By entering all your business income & expenses you will be able to do your BAS and accounts.

The reason I like to do bank reconciliations is that it ensures that I have picked up all expenses & income for the BAS and EOFY accounts.

Cheers

[KattC]

Hello @Gyroscope

Welcome to the MYOB Community Forum, I hope you find it a wealth of knowledge. If you do have enquires don't hesitate to post them so the MYOB Community can assist.

I trust the information given by @Marilyn as answered your enquiry.

Please do repost if you have any more questions. 

[Gyroscope]

Thanks I thought that would be the case bu it's always best to check! Cheers.