I’m such a big fan of reconciliations. It is the way people find out if their checkbook balance agrees with what the bank says it should. It’s how we in the accounting field find errors. It’s like putting the last pieces of the puzzle together. Not everyone shares my desire
Here are three of my tops reasons to reconcile not only your checkbook but all your accounts.
1. You May Have Guessed this One – Peace of Mind
How many times have you gone online to view your checkbook balance?
We do it all the time. We have a balance in mind let’s say it’s $1000, we go to check it online, we know we spent $50 for something on Amazon yesterday so now the balance should be around $950, right? Well, you see the balance is $200 so there is a discrepancy somewhere. Bells and whistles are going off. Red flags are flying. We know we are not in balance. We know what balance was in our mind is not what is reflected in the online balance. Now we need to dig deeper to answer the question. To settle our mind. To know we are correct and in balance. After doing some research we find the check we wrote for $750 finally cleared the bank. Now, we can rest. Peace of mind!
2. To Prove the Checkbook Balance is Correct - Accurate Records
If you are like me you want to know the truth. Numbers don’t lie.
Two plus three will always equal five. That is the beauty in numbers.
When it comes to the checkbook it is easy to determine what your
true and accurate checkbook balance is. We call it a “bank reconciliation”.
It is a big word for matching what we show our balance to be up to
what the bank shows are balance to be. If we are reconciled we are
in balance. If we are off the difference is explainable. It usually has
to do with outstanding checks that the bank doesn’t know about
yet. Or it could be many other reasons. Hey, banks make mistake
too. I once came across an error the bank made by entering the
check number instead of the check amount. It happens. Obviously
Big E-Z makes this easy. Any really good bookkeeping software
will have this feature built in. In Big E-Z you just place an “x” next
to each item that cleared on the “Deposits” and “Checks”.
3. To Be Sure Everything is Accounted For - Get the BIG Picture!
This is precisely where Big E-Z shines! We have something other
programs don’t. We have the exclusive Account Balance Tracker
(see video). It is the tool within Big E-Z that will allow you to
reconcile ALL YOUR ACCOUNTS not just your checking account.
This feature is relatively new and many people don’t know about
it yet or how to use it. With it you can track every penny of
cash coming in or going out. And track all credit card fees and
stay on top of your PayPal balance and so on.
As long as you set-up these extra account balances in the
Big E-Z you will be able to reconcile all of these accounts and
in turn get an accurate BIG picture.