Why do we reconcile accounts each month in QuickBooks online? The fact of the matter is, just like our closets and our lives, our finances need a good old-fashioned spring cleaning every now and then. That’s where reconciliation comes in.
What is Reconciliation?
Reconciliation is the process of matching your transactions in QuickBooks Online to your bank statement. This ensures that all of your transactions have been accounted for and that there are no discrepancies between your books and your bank’s records.
Why Should I Reconcile My Accounts?
There are a few reasons why reconciliation is so important:
1. It helps you catch errors. Let’s face it, we’re all human and we make mistakes. Sometimes we accidentally enter the wrong amount for a transaction, or we forget to record a transaction altogether. By reconciling your accounts on a regular basis, you can catch these errors before they become bigger problems down the road.
2. It helps you spot fraud. Unfortunately, there are people out there who will try to steal from you by making fraudulent charges on your credit card or account. By reconciling your accounts regularly, you can spot these charges quickly and take action to protect yourself.
3. It keeps you organized. Keeping your financial records organized is important for both personal and business reasons. If you ever need to access your records for tax purposes or loan applications, having everything tidy and up-to-date will save you a lot of headaches down the road.
4. It saves you time and money. Last but not least, reconciling your accounts on a regular basis will save you time and money in the long run. Catching errors and fraudulent charges early on will help you avoid costly fees and penalties down the road. reconciling also makes it easier to prepare your taxes come tax season.
There are no two ways about it, reconciling your QuickBooks Online account each month is important! Not only does it help you catch errors and spot fraud, but it also keeps you organized and saves you time (and money) in the long run. So don’t put it off any longer—get started today!