Reconciling QuickBooks is the number one most important bookkeeping task that you can perform. One of the rookie bookkeeping questions we regularly get is why the QuickBooks' bank balance doesn’t match the actual online bank balance. It’s because you are not reconciling your QuickBooks file. Below, I will explain why reconciling QuickBooks is so important.
Topics: QuickBooks Reconciliation, Financial Forecasting, Reconciling QuickBooks
I have been in the habit of reconciling QuickBooks on a daily basis for as long as I can remember. When I was a really small business (that is, working solo) it was easy to manage reconciling on a daily basis. As I grew, both I and my business found that maintaining the habit of reconciling every day became even more important.
Topics: QuickBooks Reconciliation, Cash Flow Management, Financial Forecasting, Reconciling QuickBooks
The more small business bookkeeping consulting we do the more I stand by this motto: reconciling QuickBooks is the most important thing you can do from a bookkeeping standpoint. Many small business owners use our QuickBooks support services to learn more about using QuickBooks and properly handling their small business bookkeeping. When I run through a QuickBooks bank reconciliation example with a new client it seems to go well. When I send that same client to do a QuickBooks bank reconciliation on their own it rarely gets done correctly the first time. QuickBooks is like any other software, you need to learn how to use it properly and it takes time. As you learn QuickBooks you are going to make mistakes along the way and eventually learn the correct way to use QuickBooks for your business. I will run you through a QuickBooks bank reconciliation example and give you some advice on handling it correctly.
First, let me say don't be intimidated by your bookkeeping or QuickBooks. I know many people do find QuickBooks and accounting intimidating but that is because it is something new. I always tell people the beautiful thing about bookkeeping is that it can be done whenever and I can always fix mistakes. Just don't let your bookkeeping fall so far behind that it becomes costly to catch up and fix your mistakes. Many people get intimidated by the word reconciling; I know it sounds painful. Reconciling is just a fancy word for balancing the checkbook so feel free to call it whatever you like. Don't be intimidated by your bookkeeping and find help before you start making mistakes.
Topics: QuickBooks, QuickBooks Reconciliation, Reconciling QuickBooks
