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Why is Bookkeeping Reconciliation Necessary?

October 04, 2018

It's time for your accountant to review your bookkeeping records. Step one is for him/her to check whether balance sheet accounts have been reconciled in order to feel assured that all transactions have been captured in the books for the year.

It's critical for businesses to take time each month to reconcile bank statements to the transactions entered in your checkbook register. This simple task becomes much more burdensome when left for long periods of time. Many accounting systems, such as QuickBooks, make this reconciliation process fairly easy, especially if bank accounts are connected through bank feeds to the electronic accounting file.

For tips and more information about the proper handling of bookkeeping reconciliation please click here.

One bookkeeping truism has become very clear to me over the last several years of managing business accounting books: One way to assure that a business has messy, over-complicated books is to manage business and personal expenses from one bank or credit card account.

The inevitable result will almost always be countless hours of your accountant's time in pulling these expenses apart and cleaning up the books. This translates into extra dollars out of your pocket when you accountant needs to bill you for this additional time - charges that could easily be avoided!

Written by Martha Leonard, Davis & Hodgdon Associates CPAs

Davis & Hodgdon Associates CPAs has been assisting Vermont individuals and business owners with bookkeeping and tax planning services for more than 25 years. Martha Leonard is a Certified QuickBooks Online Advisor and able to assist you with all of your QuickBooks Online needs. Call our office in Williston 802.878.1963 or Rutland 802. 775-7132 to schedule an appointment today.