Wow – Some how March has come and gone, just like that! Which brings the question…. have you reconciled your books yet for March?
Are you wondering…. “What the heck is reconcile??”
This is the VERY important process that makes sure EVERY SINGLE transaction on your bank statement is recorded in your books, whether you use an accounting software or spreadsheet to keep track – this is an EXTREMELY important step.
Do NOT skip it! Ensuring you have no missing transactions will ensure your financials are accurate and reliable.
Side note:: an accounting software such as QuickBooks Online will make your life a whole lot easier.
Now, what do you need to do to reconcile?
1. Print your bank statement
2. Go through it line by line to ensure that it has been entered into your accounting software (or spreadsheet….😬)
3. Check that it is categorized correctly
4. Make sure it balances with your statement
Reconciling is your chance to catch any mistakes. It’s the quality control of your financials.
It’s IMPORTANT because it assures us that our numbers are correct. Never assume. We are only human. Mistakes DO happen.