A key step in a bookkeeping cleanup is reconciliation — making sure your accounting system (like Xero or QuickBooks) matches your bank accounts.
Why Reconciliation Matters
Reconciliation ensures all transactions recorded in your books actually happened in your bank accounts. Without it:
- You don’t know if balances are accurate.
- Past errors can carry forward and compound.
- Reports like Profit & Loss and Balance Sheet lose reliability.
How We Check Reconciliation
- We review each account to see when it was last reconciled. Sometimes it hasn’t been done for months—or even years.
- Transactions are checked against the bank. Any “unreconciled” items need attention.
- Reconciliation must be done chronologically. You can’t just pick random months; balances need to flow from January through December.
Getting this right is essential. If reconciliation is off, everything else in your bookkeeping can be misleading.