SLC Bookkeeping Blog

QuickBooks Account Reconciliation Reduces Gossip

Written by Austin Walker | Jan 27, 2016 3:30:00 PM

After growing up in a small community where gossip spread like wildfire, I can assure you that there are a lot of accusations that are made without having any source to back up the claims. However, when false claims are made, due to the fact that everyone already believes it, the claim is just believed to be true and people make judgements based on those false accusations.

Making decisions within a business can work in a similar way. Without having proper information in-hand, poor decisions are going to be made. Account reconciliation allows for a small business to make sure that the financial records they have on-hand are completely accurate. Without the reconciliation, it's like basing company decisions on gossip.

Having accurate reports will also make for better forecasts. Past information is valuable if you're only looking at what you did. The financial forecasts are using accurate information to predict what sort of outcome a business expects to see in the near future. So, without having proper reconciliation to ensure numbers are accurate, any business will make false forecasts and open themselves to more unforeseen risk. The further the forecast, the more that may change. This feels like it was probably in a statistics class at one point or another.

Utilizing "Ask My Accountant" and other tools within QuickBooks can help to minimize the amount of mistakes a business may make due to a lack of knowledge.