There’s money in the bank, so I must be doing well!

Author: Savvy Bookkeeping | | Categories: Bookkeeper , Bookkeeping , Full Charge Bookkeeping , Money Management , QuickBooks ProAdvisor , QuickBooks Support , QuickBooks Training , Remote Bookkeeping Services , Small Business Bookkeeping

Blog by Savvy Bookkeeping

Step 4: Reconciling the accounts

Congratulations! You're on top of all of the steps. You log in to your bank account and there's plenty of money. You do a happy dance and congratulate yourself - I'm killin' it! - Not so fast...

Have all the checks been cashed? Did your deposits clear? What? You don't know? Without that knowledge, you don't know what money is leftover. And that's when checks start bouncing. And your vendors get angry. And your credit score goes down.

The accounts need to be reconciled every month. Every. Month. Credit card statements, too.

Reviewing what went out is a pretty simple process:

1. Pay attention to what checks weren't cashed yet - if it's been more than a couple of weeks, contact the payee and make sure they received it. If they didn't, stop the missing check and issue a new one. If they did, ask them to deposit it. More than 90 days have passed after the date of the check? Some banks will consider it "stale" and won't cash it.

2. Are all the credit card charges and withdrawals from the bank account accurate? If you never look at your statements carefully, I' ll bet you there are incorrect or double charges. Happens all the time. Don't give your money away!! You work too hard for it!

These are just the basics of tracking your numbers. Having a system established will put you on the right path to making knowledgeable decisions about the future - for your business and your life.
Need some guidance? Let's talk about your money management needs. Schedule your free appointment below. Stop struggling and make 2017 an easier year!