Following on from the last blog post, the next step that you need to take is to reconcile your bank and credit card statements.
The reason that you need to do this every month is to make sure that the entries on the statements are correct and that they match what you have entered. If your bank or credit card company has made a mistake then you need to know about it so that you can get it corrected. So, how to reconcile:
- Click on the reconcile button and enter in the date of your statement and the end balance, then click continue.
- Go through and click on the transactions that appear on your statement.
- When it is balanced you will show a difference of 0.00 – this shows you that your account is reconciled and you can now click on the reconcile button.
- If the difference is not 0.00 then that means that there is an item that you have checked off in error or you are missing a transaction. Find out what it is then correct it so the difference is 0.00.
- Print and save your reports – reconcile complete!