Accounts Reconciliation Blog

Most people see accounting as a foreign language. Only people called accountants can understand it. Unfortunately, if you plan to in any form of business setting, you will need to learn and understand basic accounting concepts. You’ll need to learn basic bookkeeping skills, know what are credits and debits, assets and liabilities, accounts payable and receivable, and do bank reconciliation work. Accounting work is tedious but necessary. You need to be because often accounting work is representation of your cash position. Make a mistake and you lose money or go out of business. That’s why reconciliatory work must be done often. Take for example, accounts payable reconciliation.

Accounts payable reconciliation will make sure you pay only what you ordered or used.  To do this you check your purchase order and made sure the order was authorized. Second, you check the sales invoice and make sure that the invoice matches the purchase order. Then you check your deliver receipt to make sure you receive the item you ordered. Only then will you start the payment process. Sometimes orders get cancelled and still payment is still made.