02/03/2022
Now that we are all relieved that January is over, NOW is the perfect time for a booooookkeeping check 👀
What if I told you that when you check your books and match (reconcile) your month end numbers to your bank, credit card statements, payment processing, etc, --> you can potentially catch errors that you wouldn't have otherwise.
Like, I'm talking about catching more expenses than your business actually does, or doubles of income that your business never made. 👀
It's true, my friend!
Reconciling the accounts not a very common practice that business owners do, but it is sooo ESSENTIAL for having accurate & squeaky-clean books.
And to help you out, here are 3 steps to take to make sure your books are reconciled AND accurate every month.
1️⃣ Check Your Financial Reports (the 1st, your Balance Sheet)- this Financial Report will list out all the balances for ALL your accounts, including your banks, loan balances, accounts receivable/payable, assets, etc.
2️⃣ Then grab your all your statements (bank, payroll, payment processing (like Stripe or Square).
3️⃣ Finally, check each number on your Balance Sheet against your statements side-by-side. And if they are off, start your investigating to find out why!
AND voila! You've got yourself a QC process for reconciling your books!
Now be sure to save this for later so you can conquer your business bookkeeping, too! 🔖
When was the last time you reconciled your accounts? (Don’t worry, judgement free zone over here ❤️)
