Work Smarter, Not Harder

“An investment in knowledge pays the best interest.” – Ben Franklin

Taking the time to reconcile your balance sheet accounts monthly is a must. It will be more difficult and require a lot more work to go back through twelve months of entries by the end of the year to find any duplicate postings. Incorrect entries will throw off your tax calculations, which could result in either underpaying taxes or overpaying taxes. Either mistake is something you cannot afford to make.

You should reconcile any account that has a starting and ending balance statement. These include bank accounts, credit cards, loans, credit lines, and others.

Not only do many companies fail to reconcile all their accounts, but they do not even reconcile key business accounts, such as their primary checking account. The only way to know that you have fully recorded your business activities is to reconcile your accounts. It may also help to ensure that your income or expenses are not overstated or understated. It is critical to the future of your business to have accurate financial statements.