How to Reconcile Bank Statements

I watched a profitable retail business collapse overnight. Because...   They skipped bank reconciliations for just four months. What looked like a cash flow issue…was actually systematic embezzlement. Their software showed healthy balances. But the cash was already long gone. Here’s the exact framework we used to fix it: 1. Timing discipline ↳ Reconcile weekly for high-volume businesses ↳ Monthly at minimum 2. Verification protocol ↳ Match every transaction to your bank ↳ Find what your system misses 3. Documentation standard ↳ Leave an audit trail ↳ Note the issue, note the fix 4. Segregation of duties ↳ Never let one person handle both cash and reconciliation ↳ Separate the roles 5. Exception management ↳ Set protocols for handling discrepancies ↳ From minor errors to major fraud The results? ✅ 94% increase in fraud detection ✅ Banking errors fixed within days ✅ 87% improvement in financial accuracy Strong reconciliation prevents disaster. Whereas, weak practices build false confidence. Don’t wait for a surprise to wipe you out. DM me “CashClarity”  I’ll show you how to protect your business. ♻️ Repost this to help someone avoid a financial blindspot. #bankreconciliation  #finance  #accounting 

How to reconcile your accounts in 4 easy steps: 1. Start with your bank and credit card statements. Compare them to what’s in your accounting system. If the ending balances match exactly, you’re likely reconciled. If not, move to step 2. 2. Go transaction by transaction. Look for: • Duplicates • Missing expenses • Charges that were auto-imported to the wrong category • Vendor misclassifications (e.g. software tagged as meals) 3. Adjust timing issues. Clean up accruals and prepaids so they show up in the correct period. This is important for understanding monthly performance. 4. Look for quiet gaps. We’ve seen fixed assets never recorded. Or recurring charges on expired cards that just stopped getting paid. These are easy to miss if you’re only checking totals. Reconciliation is where most of the hidden problems show up.

HOW TO CONFIDENTLY RECONCILE CREDIT CARD IN QBO ... (All rights reserved under CPA Ouma Miruka forte) --Credit card reconciliation entails matching credit card transactions in QBO with the credit card statement to ensure that everything is accurate and accounted for. --To achieve this, herein are the steps to be followed: STEP_1. GET READY FOR RECONCILIATION. --Gather your Credit Card Statement with the following details: (i) The most recent statements. (ii) The statement's end dates. (iii) The beginning and ending balances. STEP_2.ACCESS THE RECONCILIATION TOOL. --Log in to your QBO account, go to the "Settings" ; select "Reconcile" under the Tools section. STEP_3.START THE RECONCILIATION PROCESS. --Choose the credit card account you want to reconcile from the dropdown menu. --Enter the following details from your statement: (a)Ending balance. (b)Statement ending date. Click "Start Reconciling". STEP_4.MATCH TRANSACTIONS. --The reconciliation screen will display transactions in QuickBooks: (i)Charges. (ii)Payments. (iii)Refunds. --Compare& contrast each transaction in QuickBooks with those on your credit card statement as follows: (i)Mark as cleared: Click the checkbox for transactions that match. (ii)Identify discrepancies: If you find transactions on the statement that are missing in QuickBooks or vice versa, investigate. (iii)Add missing transactions: Use the "+ New" button to record them. (iv)Edit/Delete incorrect entries: Adjust as needed. STEP_5. CHECK THE DIFFERENCES. --At the bottom of the reconciliation screen, look at the Difference: (a) $0 Difference-means your credit card statement and QuickBooks are in agreement. (b)Non-zero Difference: Revisit the transactions to locate errors, such as missing payments, duplicate entries, or incorrect amounts. STEP_6: FINALIZE THE RECONCILIATION PROCESS. --Once the "Difference" is $0, click "Finish Now" then "SAVE" or print the report. --To get the Report, go to "Reports" then "Reconciliation Reports". ----TIPS---- **If the account doesn’t reconcile, run a transaction report for the credit card account to spot missing or duplicate entries. --Double-check if any payments were applied to the wrong account! REPEAT! CPA OUMA MIRUKA LLC The King of Remote Accounting #RealEstateAccounting #AccountingTutor #QuickBooksOnlineExpert #TheBestAccountant