Reconciling Accounts

Reconciling ALL PERTINENT accounts cannot be stressed strongly enough.

The process of reconciliation ensures the accuracy and validity of financial information. It compares third-party and independent financial statements and records with internal financial records and ledgers. For example, account reconciliations include:

• banks, credit card, and PayPal reconciliation

• accounts payable reconciliation

• accounts receivable reconciliation

• inventory value reconciliation

• inter-company reconciliation

Performing account reconciliations monthly, quarterly, or annually, depending on the type of account, detects discrepancies in a timely manner. To be clear, the reconciliation process must be performed within your accounting software.

Accounts payable reconciliations ensure that a vendor’s statement balance agrees with their balance in your books and exposes any fraudulent activities.

The accounts receivable reconciliation process identifies unpaid invoices, past due payments, collections, bad-debt-write-off balances, and detects discrepancies in your books, while maintaining a healthy cash flow.

Due to the importance of this accounting function, Books Done Right offers a highly-beneficial account reconciliation training, For those small businesses owners and entrepreneurs, who would rather focus their valuable time and resources on what they do best, we also offer professional, cost-effective, outsourced bookkeeping and accounting services to establish quality control protocols.