How do I check whether a bookkeeping firm reconciles its clients' bank feeds on a schedule?

Begin with a sample, chosen by you rather than the seller. Ask to open several client files of different sizes and see the date of the latest reconciliation, the number of unmatched items and how old they are. Old unmatched items usually mean the schedule is slipping, whatever the firm says.

Then ask how the routine works. Who handles feeds, who reviews, and what record shows the review happened? Look for a checklist, a task tracker or dated notes. Ask what happens when a client’s bank connection breaks or when clients send late documents, since those are the usual causes of delay.

Finally, consider capacity. Does the schedule rely on one person working evenings? How does the firm cope with the busiest weeks? Ask for a recent month’s turnaround record and any client complaints about lateness. Confidentiality matters here, so ask your lawyer how to see client files without breaching client trust. Ask also about corrections. When an error is found after a reconciliation was signed off, how is it fixed, recorded and explained to the client? A clear answer suggests discipline. A vague one suggests that quality depends on who happens to be watching.

Key takeaways

• Choose your own sample of client files and check the latest reconciled date.
• Look for dated sign-offs, not just a verbal assurance.
• Ask what happens when bank connections fail or clients send documents late.