Sometime during your bookkeeping time your QuickBooks balance will be different than you bank account balance. Even though you are really, really good about entering your data it is still going to happen and it is going to happen often. The top reasons that this happens is:
- Credit card payments that have been entered into QuickBooks but have not been deposited into the bank
- Deposits have been entered into QuickBooks but have not been cleared at the bank
- Checks have been written from QuickBooks but they have not cleared the bank
The best way to get an accurate account of what is actually in the bank is to reconcile your accounts. You reconcile your accounts by taking the bank statement and comparing it to your QuickBooks transactions. This will also help you ensure that there have been no mistakes made by either you or the bank giving you a better picture of what money you actually have.
If you aren’t sure how to reconcile your accounts, call us here at Collins Bookkeeping at 814-688-0405 so we can do it for you.