5 Quick Tips on Reconciling your Bank Accounts
Keep accurate records: Ensure that all financial transactions are recorded in your books accurately and promptly. This includes all deposits, withdrawals, checks written, and fees charged by your bank.
Use bank statements: Obtain your bank statement and use it to verify each transaction in your books. Check for discrepancies, such as missing deposits or unauthorized withdrawals.
Verify balances: Ensure that your beginning and ending balances match your bank statement. If not, review your transactions for any errors or omissions.
Categorize transactions: Assign each transaction to the appropriate category in your books, such as income, expenses, or transfers. This helps you to track your cash flow and prepare financial statements.
Reconcile regularly: Reconcile your bank accounts regularly, such as at the end of each month. This helps you to identify any errors or discrepancies early, and take corrective action.
