The Importance of Reconciliation: Keeping Your Books Balanced

Reconciliation is a critical yet often overlooked bookkeeping process. By matching your financial records with external statements, you can ensure accuracy, prevent issues, and maintain financial health.

Why Reconciliation Matters

• Catch Errors Early: Identify and resolve discrepancies like data entry errors or double charges.

• Prevent Fraud: Spot unauthorised transactions promptly.

• Maintain Accurate Financial Records: Reliable records are essential for decision-making.

• Stay Audit-Ready: Organised, reconciled records simplify audits and tax compliance.

• Improve Cash Flow Management: Know exactly how much money is available.

  
  

How to Reconcile

1. Gather Statements: Collect bank, credit card, and supplier statements.

2. Match Transactions: Compare financial records with statements.

3. Identify Discrepancies: Investigate differences.

4. Make Adjustments: Correct errors and update records.

5. Review and Confirm: Double-check for accuracy.

   
   

Consistent reconciliation keeps your financial records accurate and prevents problems from escalating.