Account Reconciliation

Ron explains it all in just 60-seconds.

So what is ‘reconciling accounts’, really?

Account reconciliation is the process of checking that your financial records actually match reality. Usually, that means comparing your internal accounting records like your bookkeeping software with an external source, like your bank statement.

If something doesn’t line up, you investigate. Maybe a payment was missed. Maybe a deposit was recorded twice. Maybe there’s fraud. Reconciliation helps you catch mistakes early and keeps your financials accurate.

Most businesses reconcile monthly, but high-volume operations might do it more often. Skipping it? That’s how businesses end up making decisions with bad info or getting audited. Reconciliation doesn’t just clean up your books. It protects them.

Reconciliation: because guessing your bank balance is not a business strategy.

How people actually use it in a sentence...

“Tina didn’t reconcile her accounts for three months… and didn’t notice $2,000 in fees until it was too late and checks started bouncing.”

Did you know...

In 2020, the U.S. government’s Defense Department reported $35 trillion in accounting adjustments, much of it due to missing or unreconciled transactions.

(Apparently, nobody’s above double-checking the math.)