Tips for Reconciling Your Accounts

Keeping Up-to-Date Books Can Help You Spot Errors

Have you ever wondered why reconciling your bank accounts is so important? By reviewing your transactions in your bookkeeping software and comparing them to your bank statements and/or credit card statements, you are able to make certain that all of your transactions are accounted for so that everything matches and is accurate. Reconciling your accounts should be a monthly process, allowing you and your books to stay up to date.

To simplify the reconciliation process, keep these tips in mind:

• Match the beginning balance in your software to your statement’s beginning balance. It is important that these two figures match. If there is a discrepancy, contact your bookkeeper and ask why.
• Keep it simple. Once you have your beginning balance input, move forward by inputting the ending date, ending balance, and any interest income or charges. Now it’s just a matter of checking off those transactions that are matched with your software and bank account.
• Make sure you are recording your transactions in the correct place.  Using the correct income and expense account is critical.
• Should trouble arise during your reconciliation, either make posts to the “Ask My Accountant” or contact your bookkeeper directly.
• Use your software’s report function.  Print out and save a copy of your reconciliation report.

If you need assistance with reconciling your accounts, contact us, Next Level Accounting & Tax.  Our experienced and qualified bookkeepers would enjoy handling your reconciling for you.