How to Reconcile Your Accounts

Have you ever wondered what happens if you don't reconcile your accounts? Well, for starters, you could miss out on important transactions, such as deposits, withdrawals, and payments. This could result in inaccurate financial statements affecting your business.​​​​​​​​​ More importantly do you know what reconciling your accounts means?

Reconciling simply means matching your withdrawals (bill payments, receipts) and deposits (sale receipts, invoice payments) to your bank statements or credit card statements.

Reconcile regularly! It's important to reconcile your accounts on a regular basis, preferably monthly. This will help you catch any errors or discrepancies early on, before the snowball into bigger problems.

Let’s start the task of reconciling your accounts!

1. Gather all your statements needed for the time period.

2. Compare the starting and ending balances on your bank statement to your accounting record.  They should match.

3. Go through each transaction on your bank statement and compare it to your accounting records.  Mark off any transactions that match.

4. For any transactions that don’t match, investigate the discrepancies.  This could include missing transactions, errors in recordings, or other issues.

5. Adjust your accounting records to reflect any discrepancies and ensure they match your bank statement.

If you're still struggling with reconciling your accounts, it might be time to seek professional help. If you have any questions, let me know below!

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