Every transaction in your books matched and verified against your bank and credit card statements. Done monthly. Done right.
Reconciliation is the monthly process of comparing your bookkeeping records against your actual bank and credit card statements - making sure every transaction shows up correctly, in the right month, and at the right amount.
If your books say you have $24,318.42 in checking and your bank statement says $19,807.91, something is wrong. Reconciliation finds and fixes it.
Without monthly reconciliation, your P&L and Balance Sheet are guesses - not records. Reconciliation is the difference between bookkeeping and pretending to bookkeep.
Every business with a bank account or credit card needs reconciliation. We're not picky about industry - service businesses, contractors, retailers, online sellers, and consultants all benefit equally.