How to do account reconciliation in 5 easy steps

1. How to do account reconciliation in 5 easy steps Paxcom India Posted 8 hours ago 0 16 If you're like most business owners, you probably dread doing account reconciliation. It's definitely not the most fun task on your to-do list. But it's a necessary evil if you want to keep your books in order. Thankfully, it's not as hard as it seems. With these five easy steps, you can do account reconciliation software account reconciliation software in no time.

2. Step 1: Gather all the necessary documents To start with, you need to gather all the relevant paperwork. This includes any monthly or yearly statements and reports like bank statements and invoices. You should also include your most recent sales report and expense records in the mix. Having everything in one place makes it easier for you to find things when you need them later on down the line. Step 2: Find your starting balances Now that you have all of your financial records, check through each account individually for its opening balance (or starting point). For example, if your business checking account had a $20,000 balance at the beginning of last year, add up all transactions until now and record this number as your closing balance in the opening balance column. Then, record the starting balance of each account on its separate sheet of paper for easy reference later on down the line. Step 3: Check your receipts Once you've gathered all your records, check through them to make sure that they're accurate and complete. Make sure that every entry is properly dated and labeled with the relevant information like sales date, type of sale (i.e. cash sale), customer number or invoice number, etc.. If you find any transaction missing in one account but included in another (for example a cash sales transaction in your sales report but not in your bank statement), add it up and record it as an adjustment in your expenses sheet under "adjustments." Step 4: Reconcile each account separately Now that you have calculated your ending balances for all of your accounts, start checking through them one by one. Make sure to

3. compare each entry in the statement to its corresponding entry on your expense record or sales report to make sure that they match up. For example, if you found a $300 discrepancy between your bank balance and the total amount of recorded cash sales throughout the year, add this number under adjustments and use it later when reconciling your expenses to find any missing transactions. Step 5: Balance everything out Once you've done all of the above steps and checked through every transaction individually, add up the additional charges (i.e. adjustments) and subtract these numbers from opening balances (because these numbers will be the ending balances of each account). Then, add up all ending balances from each separate sheet. If there is a difference in total amounts after adding and subtracting adjustments, it means that you have a discrepancy somewhere in your records so take some time to double check your work. Once you have reconciled all accounts, pat yourself on the back for a job well done! • ACCOUNT_RECONCILIATION_SOFTWARE ACCOUNT_RECONCILIATION_SOFTWARE