The Importance of Account Reconciliation

Account reconciliation is important to your business and yet can often be overlooked by business owners. Reconciliation of business bank and credit card accounts can be one of those tedious tasks that, while technically not required in order to operate a business, is a vital part of business activities.

What is reconciliation?

It’s the process of matching transactions entered in your bookkeeping to those in real life (on your bank and/or credit card statements)

Why is reconciliation important?

  • Uncovers duplicated entries that need to be removed
  • Finds any missing entries
  • Locates mis-entered transactions that need to be corrected

To sum up – reconciling your accounts ensures that your bookkeeping matches exactly what happened within those accounts.

Why is this often overlooked?

Some business owners might not know they even need to do this. Others may not know how to perform a reconciliation or they may not know how it’s done in the software they’re using. And, to be honest, it’s a chore. It’s one of those things that should be done every month but doesn’t really further your business (except to make sure that your bookkeeping is accurate. Minor detail.). It’s a task that is easily pushed to the bottom of a to do list.

How a bookkeeper can help

Simply put, by doing this for you. I am aware this is weird, but I actually enjoy reconciling accounts. I have a tendency to type quickly and flit from task to task if I don’t have a specific plan in mind. So I know that this can make me more prone to typos than the average bear. But going through and comparing bookkeeping entries to account statements, finding errors, entering missing receipts and making the end numbers match gives me such a feeling of satisfaction. What can I say? It’s a bit of control in a chaotic world.

Not ready to hire a bookkeeper yet but want to know how to do a proper reconciliation in whatever bookkeeping software you’re using? Contact me and let’s set up a time to do a tutorial and walk through. This can easily be done over Zoom and can be done in your own software. Pick a month and let’s reconcile it together.

Ready to hire a bookkeeper? Fill out our Get Started form as detailed as possible and let’s figure out what you need, put together a plan and let’s get going!