Have you been skipping your reconciliations, or doing them without ever quite understanding why they matter? 🤔
It’s one of the things I hear from QuickBooks users often, usually because they just don’t understand why it matters.
Reconciling is comparing what happened in real life (your bank account) to what you entered into QuickBooks.
This way, you can show up to your tax appointment with confidence, knowing nothing is missing, and nothing has been doubled.
What Is Reconciliation in QuickBooks Online?
Every month your bank sends a statement, by mail or paperless.
Reconciling means comparing that statement to QuickBooks, transaction by transaction, until the two match.
Some people reconcile on a spreadsheet, or have someone check things over outside QuickBooks.
That helps, but only reconciling inside QuickBooks catches duplicates, missing transactions, and errors you’d never spot on a bank statement alone.
What a Reconciliation Discrepancy Means (And Why Your Beginning Balance Is Off)
Your beginning balance in QuickBooks should match your bank statement.
When it doesn’t, that’s called a discrepancy, usually from a transaction that was edited, voided, or deleted after it was reconciled.
It’s one of the most common things that trips people up, and it’s fixable.
I walk through exactly how in How to Fix Bank Reconciliation Discrepancies.
3 Things Reconciling Catches That Nothing Else Will
Reconciling is your check and balance system, and it catches things nothing else will.
Old transactions that never cleared.
If the same ones keep sitting there month after month, something was entered wrong, or never happened at all.
Duplicates from your bank feed.
If you’ve used bank feeds for any length of time, you’ve probably got a duplicate or two hiding in there, inflating your numbers.
Errors that change your tax bill.
Every transaction touches your Profit and Loss and your Balance Sheet, the same two reports used to file your taxes.
Skip reconciling, and you could overpay on income you never received.
Why Every Transaction Feeds Your Profit and Loss and Balance Sheet
Every transaction you enter, an expense, an invoice, a bill, a customer payment, feeds directly into those two reports.
If reconciling has been on the back burner, they might already be telling a story that isn’t true.
I walk through exactly what that looks like, and what to do about it, in the video above.
Looking for another video in this series? Click the link below.
“How to Record Income in QuickBooks Online (3 Ways)”
“How to Customize Your App Menu for Easier Navigation (Bookmarks)”
“When to Use Bank Feeds in QuickBooks“
Find more about Reconciliation here
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If you want QuickBooks set up right from the start, so reconciling makes sense the first time, join me in my free Customizing QuickBooks workshop.
I’ll show you how to set it up for your specific business, using only what you need.
Save your seat here: https://canduskampfer.com/learn
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What’s your biggest aha from this one?
Tell me in the comments. ⤵️
#CandusKampfer
