QuickBooks is a very popular accounting software program for small businesses, and I use it personally for my practice as well. But, if you are using QuickBooks, there is one key step you should be taking – reconcile your bank and credit card accounts!
Why? When you reconcile your accounts, it helps to make sure that the data you entered is accurate. Everyone makes mistakes when they enter data, even when they upload data (uploaded data has a tendency to duplicate transactions when you have transactions between multiple accounts). This is okay, as long as you catch your mistakes by reconciling to your bank and credit card statements.
Reconciling your accounts will not only help you to make sure bank accounts are accurate, but it will also help you to make sure that your receivables from customers and payables to vendors are more accurate as well.
Fortunately, this is not a difficult task to do. If you have never reconciled before, it may take some work to get the first month’s reconciliation taken care of, but after that, the task become easier.
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