As a business owner, one of the most important priorities in keeping your financial records in good shape is to keep them reconciled on a regular basis. This keeps you as the owner more in control of the financial status of your company, and helps you make better financial decisions. When we talk about reconciling accounts, usually company checking accounts and company credit cards come to mind. These are two of the most important types of accounts to reconcile. However, some other accounts are almost just as important which help in the whole process. Accounts receivable, accounts payable and inventory all contribute to the reconcilation process, and must be reconciled, as well in order for a smooth reconcile to your business checking accounts. To reconcile accounts receivable and accounts payable, make sure you batch up the deposits, and pay attention to the dates of posting when entering them into your computer software programs. Inventory can be reconciled to the warehouse counts, and adusted by the final count.
If these tips are followed, your reconciliation process will run much smoother, with less mistakes, and you will be much more confident in your bottom line financial numbers at the end of the month.
Copyright Jeanine Pfeiffer