At Skynar Bookkeeping Services, we Set Up, Clean Up, and Keep Up with our clients’ bookkeeping. For help setting up your books, check out our past blog (link blog). Next is to clean up your books - but, what does that mean? In short, it means you reconcile. The process of reconciling can be as easy or as complicated as you make it, based on the time and attention you give your books on a regular basis.
Reconciliation requires meeting two criteria - verify the entry with the original documentation of the transaction and verify the entry with your bank statements. As you go entry by entry, double-check the original receipt for the correct amount and double-check your bank statement reflects this amount correctly. If the entry passes both criteria, move onto the next.
Along the way, be cautious and aware of duplicate entries or missing information. If there is a duplicate entry, correct this error immediately. If documentation is missing, fill in the gaps with the accurate and necessary information. Your books should not have holes or repeats.
While reconciling, you’ll also catch if any information is inaccurate or incomplete. Be sure to refer to your documentation/receipts before adjusting with the correct information. From there, make sure your adjustments align with your bank statements so your books maintain accurate balances.
Cleaning up your books also means catching any suspicious or unknown charges and handling them quickly. By cleaning up regularly, you’ll stay on top of the ins and outs of your money and anything unexpected will stand out as a red flag.
After you’ve officially reconciled your books and your statements match your balances, it’s time to re-run your financial reports for accurate data! After reconciliation comes reporting and your reports will only be beneficial if they are up-to-date and accurate.
For help cleaning up your books or for step-by-step tutorials, contact a certified and reputable bookkeeper. Happy bookkeeping!