Having a problem reconciling your credit card?

Just recently, I was asked to help someone with reconciling their credit card account in Quick Books.  They had reconciled to the credit card statement as usual, but when they printed off the details, they also had the previous month’s transactions on the report. 

So what had they done wrong?  Simple, they had clicked on the ‘undo last reconciliation’ button by mistake.  So basically they had to reconcile the previous month again, and now everything is correct in their books. 

A bookkeeping tip – look at the transactions listed under your credit card.  If there is a check-mark next to the item, it has been cleared.  If there is this symbol * next to the item, it hasn’t yet been reconciled.  

Small Business Accounting

Never underestimate the requirement for accurate financial statements! 

An example of these are monthly income statements, balance sheets, and cash-flow statements which are all needed when filing your taxes.  These statements will also help you to assess the financial health of your company and to see where you can create improvements. 

A great investment to help you in this area is to purchase accounting software and of course, hiring the skills of a professional bookkeeper!  There’s no point having software to record your transactions if you’re not sure which side of the equation refers to debits or credits!!