Tips For Reconciling A Bank Statement

5 July 2016
 Categories: , Blog


One of the biggest record keeping headaches that can come up each month is keeping track of business expenditures. If you have several different credit cards or debit cards for your business, sorting through charges and receipts can take up a sizable chunk of time. Here are some tips on how to easily reconcile your bank statements. 

Keep Receipts in Folders

The first thing to do happens before you even get your bank statement. It's a good idea to keep all of your receipts in folders labeled with the months that the expenses occurred. Keep a separate folder for each of your credit cards so that you don't have to sort through a huge mountain of receipts. If it's at all unclear what the receipts were for, write yourself a short note about the expenditures on the receipts. If you have any recurring online expenses for your credit card, it can be tempting to skip these, but it's important to print out all of these electronic receipts each month to go with your files. Otherwise, you'll have to dig through archives in your inbox if the time comes for an audit. 

Another thing to do is to sort the receipts by date. This will make it much easier to match each receipt to the line item on your credit card statement. 

Compare with Your Bank Statement

Once you get your bank statement, the next thing to do is go through each line item and verify that you have a receipt and that the receipt matches the total amount charged on your card. You may want to place check marks next to items you find, and circle items that are missing receipts. It can also help to put a number next to each line item, and then write the same number on each receipt that it corresponds to; this can make it even easier to return to the receipts you need to see later. 

Look for Missing Receipts

You may be missing a few receipts, and it's important to try and track them down. Look for receipts that you may have left in your email account. Contact vendors to see if they can send you a new invoice. 

Dealing with all of these bookkeeping tasks each month can take away from the productivity of a small business. Even if you don't have a full-time financial employee, you may wish to hire consultant bookkeepers, such as bookkeeping by Estrada & Tan, to handle recurring tasks like these so that you have one less thing to worry about.