Reconciliation

What is it? Do business owners need to do it?

Reconciliation is when checks are completed to ensure that two sets of data match.

It ensures that the money going out of the account is the same as money actually spent.

It is the same for money coming into the accounts.

This can be as simple as checking the balances match at the end of each period.

When the balances do not match this is where things become more challenging.

Uneven balances will be due to an error.

Investigating errors can be fairly quick if reconciliations are completed regularly.

If unable to locate the error, then support from a bookkeeper or accountant should be sought.

All errors need to be rectified, as owners are legally required to keep accurate records.

Outsourcing this task if it becomes complex will likely save time and stress.