Question: I don’t like reconciling my checking account. Is there really a reason to do that?
Answer: Monthly reconciliations are a critical part of your accounting. I could argue that it is one of the most important steps to making sure your records are complete and correct.
Every month, you should reconcile each of your bank accounts and also each of your credit card accounts. Reconciling is a means of checking that your accounting records are accurate and complete. If you have neglected to record a transaction, deposit or withdrawal, it will appear on your bank statement, and you can adjust your financial records accordingly. It will also reveal bank errors should they occur and potentially uncover fraud within your company. Reconciliations will be one of the first things requested should you be audited.
Harriet Gatter, owner of Accounting Support LLC, was an ad specialty distributor for 23 years and an adjunct professor of accounting at Neumann University. She sold her ad specialty business in 2012, became certified as a QuickBooks ProAdvisor, and now works exclusively with ad specialty distributors nationwide on their QuickBooks, order management and accounting needs.