Guide to Reconciliations

A Small Business Owner’s Guide to Getting Reconciliations Right

Reconciling your accounts is all about making sure your records match what the bank says actually happened. It’s like double-checking that everything adds up, so there are no surprises.

Here’s a brief guide to reconciliations:

1. Gather What You Need

Start with two things:

• Your bank statement (the official record from the bank).

• Your accounting records (this could be in your software, a spreadsheet, or wherever you track your transactions).

2. Match the Transactions

Go line by line and compare the two. For example:

• Did the $100 you spent on supplies show up in the bank statement?

• Does the $500 payment from a client match what the bank recorded?

3. Spot the Differences

If something doesn’t line up, figure out why:

• Did you forget to record a payment or expense?

• Is there a bank fee or charge you didn’t expect?

• Did you accidentally write the wrong amount?

4. Make the Fixes

Once you find the issues, update your records to match what actually happened. If something still doesn’t make sense, it might be worth looking into it further or reaching out to your bank.

5. Check the Ending Balance

When you’ve gone through everything, your ending balance in your records should match the bank statement. If it does, great—you’re reconciled!

Think of reconciliation like organizing your workbench: making sure every tool is where it’s supposed to be. It keeps your business running smoothly, avoids surprises, and gives you peace of mind knowing your finances are in order.

Reconciliation doesn’t have to be overwhelming! If you have questions or need support, I’m here to help. Whether it’s explaining the process, cleaning up your books, or providing ongoing accounting services, let’s work together to keep your finances stress-free.

Reach out today to get started!

The information provided in this blog is for general informational purposes only and is not intended to be comprehensive or serve as professional advice. Every business and financial situation is unique. I encourage you to consult with a qualified professional to address your specific needs and circumstances.