YES! YES! YES!
Let me tell you why. If you think about it, everything goes through your bank account eventually. Sales get deposited into your bank account, everything is eventually paid through your bank account. Even if you buy it on a credit card, the payment comes from your bank account. When your bank account is reconciled, you know that all the money in and out is correct. It my not be classified correctly but it is accounted for. I tell my clients if it in not in the bank account IT DID NOT HAPPEN!
Errors that can go undetected in an unreconciled bank account:
- Duplicate sales transactions-resulting in overstated income and possibly extra taxes paid
- Duplicate expense transactions
- online deposits that did not go thru for some reason- I have found this issue many times, saving my clients money and basically paying for my services
- bank errors-they do happen