What Is Reconciliation — and Why Should You Do It Monthly?

Let’s be honest: most small business owners don’t get excited about the word “reconciliation.”
But if you care about where your money is going — and how much of it is actually yours — this bookkeeping task is non-negotiable.

If you’re not reconciling your accounts every month, you could be flying blind.

Let’s break it down 👇

What Is Reconciliation?

Reconciliation simply means comparing your bookkeeping records to your bank or credit card statements to make sure everything matches.

In QuickBooks (or any other software), your income and expenses are recorded based on transactions — but mistakes can happen:

• Duplicates

• Missing entries

• Incorrect amounts

• Bank errors

• Misclassified transactions

Reconciling ensures your books are accurate, complete, and up to date.

Think of it as balancing your checkbook — but for your business.

Why You Should Reconcile Monthly

Reconciliation isn’t just a year-end chore. Doing it every month is one of the best habits you can build as a business owner. Here’s why:

✅ 1. Catch Mistakes Early

The longer you wait, the harder it is to catch and fix errors. Monthly reconciliation helps you:

• Spot duplicates or missing transactions

• Identify accidental personal charges

• Notice recurring charges you may have forgotten about

✅ 2. Know Where You Stand

Are you profitable this month? Did you hit your goals? Can you afford to reinvest?
Your Profit & Loss report is only as accurate as your books — and reconciliation keeps it reliable.

✅ 3. Prevent Fraud and Theft

If someone is misusing a company card or a fraudulent charge goes unnoticed, monthly reconciliation helps catch it before it snowballs.

Fraud often hides in plain sight — unless you’re checking regularly.

✅ 4. Make Tax Time Easy

If you reconcile every month, your books are clean and ready for your CPA come tax season.
No last-minute scrambling. No surprises.

✅ 5. Keep Cash Flow Under Control

Reconciling helps you monitor your real-time cash position — not just what your bank says, but what’s truly available after pending checks, auto-drafts, and unpaid invoices.

What Accounts Should You Reconcile?

You should reconcile every account that moves money in or out of your business, including:

• Business checking account(s)

• Business credit cards

• Loan accounts

• PayPal or Stripe (if you receive payments)

• Petty cash (yes, even cash counts!)

What If You’ve Never Reconciled Before?

If you’ve never reconciled — or haven’t done it in months — don’t panic.

Start with the most recent month and work backward if needed. It’s often easier to clean things up step-by-step than try to fix an entire year at once.

Or, if you’re not sure where to begin...

Want Help Getting Caught Up?

I specialize in helping small service-based businesses — like cleaners, contractors, and solo operators — clean up their books and start fresh.

✅ I’ll review your books
✅ Reconcile your accounts
✅ Get you caught up — stress-free

Let’s start with a free Bookkeeping Health Check.
No pressure. Just clarity.

Contact us by clicking here

Or send us an email at David@RuckandReconcile.com

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And as always, thanks for reading and we’ll see you next week!