What is a common bookkeeping practice frequently performed by businesses?

Regularly reconciling bank statements is a fundamental bookkeeping practice that ensures the accuracy and integrity of a business's financial records. This process involves comparing the company's financial records with the bank's records to identify discrepancies, errors, or fraudulent activity. By performing bank reconciliations, businesses can track cash flow more effectively, verify that all transactions are recorded accurately, and maintain a clear picture of their financial status. This practice not only helps in spotting mistakes early but also fosters better financial management and decision-making.

The practice of creating annual budgets, while important for planning, is more strategic and may not occur as frequently as bank reconciliations. Filing tax returns is typically an annual task focused on compliance rather than ongoing financial tracking. Conducting employee audits generally pertains to human resources and compliance and does not directly relate to standard bookkeeping practices. Thus, regular bank reconciliation stands out as a frequent and essential activity within bookkeeping.