Bookkeeping Basics

Guide

Reconcile your accounts every month

Catch errors, missed charges, and fraud early by matching your books to your bank, monthly.

8 min read·4 steps
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  1. Pull your bank statement for the month

    Download or view the full statement for the period you're reconciling, covering every account the business uses.

  2. Match every transaction to a record

    Go line by line and confirm each bank transaction appears in your bookkeeping. Most software can do this automatically, flag anything it can't match.

  3. Investigate anything that doesn't match

    A missing transaction, a duplicate, or an unfamiliar charge all need an answer before you move on. Don't just note it and forget it.

  4. Confirm the closing balances agree

    Your bookkeeping balance and your actual bank balance should match exactly at the end of the process. If they don't, the error is still hiding somewhere in the detail.

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