Don't Let the Numbers Surprise You — Week 2: Reconciliation Matters
Entering transactions into your books is only one part of the bookkeeping process. To know whether your financial records are accurate and reliable, your bank and credit card accounts need to be reconciled.
Reconciliation means comparing the transactions recorded in your books against your original bank and credit card statements. This helps verify that transactions have been recorded correctly, identify missing or duplicate entries, and investigate differences between your records and the statements. It also helps confirm that your account balances agree with the financial institution's records.
Why does this matter? Because your financial reports are only as reliable as the information behind them. Regular reconciliations help you identify discrepancies, keep your records accurate, and make financial decisions with greater confidence.
Accurate books start with more than entering transactions. They start with validating the numbers.
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