Reconciling your bank accounts is the first step in bookkeeping. Comparing your bank statements to your accounting software to ensure all transactions are appropriately recorded is reconciling your bank accounts.

Deposits, withdrawals, and any fees or charges are all included in this. In order to identify any mistakes or discrepancies early on, you should balance your bank accounts at least once every month.

Use these methods to reconcile your bank accounts:

• To confirm that all transactions are consistent, compare your bank statement to your accounting software.
• You should look into all differences and, if necessary, fix them.
• Reconcile any unpaid deposits or transactions that still need to clear.
• Ensure that your accounting records correspond with your bank statement by making necessary corrections.