The majority of accounting software available on the market allows you to attach your checking account, which then gives you the power to automatically download and sync transactions. This is great because it saves you the time and energy of manually entering all banking transactions, which is helpful when reconciling your accounts.
You might be wondering what ‘reconciling your account’ actually means. Put simply, it means taking two sets of records (your bank and accounting software) and ensuring they both align with one another. This is beneficial because it can highlight transaction errors, duplicate and fraudulent charges, whilst simultaneously supplying you with the peace of mind knowing that each credit and debit are processed successfully.
When you’ve integrated your accounting software together with your bank, you will then have the power to categorise transactions as they are available in throughout the week and month. Then, once the month’s end comes, you’ll run a reconciliation report which will automatically match your transactions.
If you are doing this regularly (preferably a minimum of monthly), you’ll be ready to easily highlight any discrepancies when things don’t balance correctly, which may allow you to quickly get things back on target.