Ask the Accountant…
Question: I produce my month-end statements and then do my reconciliations whenever the statements are ready. Is that the right order?
Answer: Reconciliations are an important step in keeping your data up to date. Reconciliations are a safeguard that your numbers are correct, or at least entered in your system. A reconciliation shows transactions that might have been omitted and need to be recorded, or which ones might have been entered twice. When you have completed your reconciliations, you will know that all cash inflows and outflows have been accounted for, even if you don’t know whether or not they are in the correct account.
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- Management
Harriet Gatter is an independent accounting and order management consultant serving only ad specialty distributors. Her specialty is QuickBooks Desktop and QuickBooks Online: getting started; migrating from QB Desktop to Online; converting from other order management; and accounting systems, including manual spreadsheets, restarting QuickBooks files that have gone rogue, and training distributors to use their new system. (She was also a distributor for 23 years.)