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!
This is really important to do every month. You need to make sure that your balance agrees with the bank balance and you need to know which payments have not yet cleared the bank.
If you need any help with reconciliations then you can send me an email at kerry@abacusbookkeepingfl.com and I will be happy to help you.
Great information again as always. I have learned so much since I am visiting your blog; thanks!!
Thanks Olga! Glad it is helping!
I love how you’re breaking down the overwhelming parts of financial management for your business into do-able steps. Great post!
Thanks Pauline! Baby steps all the way!
When payments have not cleared it can be a nightmare. It gives a false sense of what you have available. Good tips Kerry.
Absolutely Kim! Nothing worse then thinking you know how much you have in your bank account when an old check clears the account!
Boy has this happened to me once. Learned my lesson.
Thanks for all the great info you provide.
Yes it is one of those things you don’t do again if you can help it!
Great tips that are a must for a successful business! Thanks!
Thanks Denny. Makes a big difference in a business when the bookkeeping is done on a regular basis.
Reconciling bank and credit card statements is definitely important Kerry. Very useful tip here and that’s an area that I can always use improvement in.
Thanks Edmund! People are always tempted to put it off but it must be done monthly.
SO much easier than back in the old days!
Great post of reconciling your bank and credit cards.
Thank you!