I don’t think I can say the word reconcile enough. It’s such an important word in life as well as in your business. Several years ago when I was going through marriage counseling, my pastor advised me that no matter what happens in my relationship, it’s better and more beneficial to reconcile than to be right!
That was a big pill to swallow since at that time in my life, I was more focused on being right. I’ve since grown up a little bit 🙂
So how do that apply to business?
It doesn’t matter that you are right that you have $10,000 in the bank, if you don’t reconcile your accounts on a frequent basis you are in big trouble.
Recently, I had a client relied exclusively on software to do the work. Now, let me say this as clearly as I can, I LOVE technology! It has made my life so much easier, but at the end of the day there are just a few things that artificial intelligence cannot take away from the human race and this is very evident when it comes to reconciling your account.
Use the technology you have available, but also use your brain!
Reconcile your account often and frequently. Some on my clients need bi-weekly reconciliation, while others only need bi-monthly. It all depends on the flow of your business and the amount of transactions that flow through your business.
As I was saying above, my client didn’t reconcile their account for three years, instead relied exclusively on the bookkeeping software to do it for them. This resulted in over $30,000 misplaced funds and mistakes in their accounts.
This could be avoided by simply taking 20-3o minutes in your schedule each week or month to reconcile your account.
If numbers intimidate and freak you out, then barter services or hire it done.
It’s way easier to make solid business decisions if you are working from the correct numbers in your business.
It’s a simple task, but don’t take it for granted. If you reconcile your account a bit each week, it will dramatically decrease how much time you need to complete this task as the end of the month.
So once again, I say reconcile, reconcile, reconcile.
Need help reconciling your books, start a conversation by sending me an email here and let us help you get on a smooth road to reconciling your account.