Account Reconciliation for Nonprofit Organizations
We match your bank statements to Quickbooks to ensure that all of your transactions are accurately recorded
What is Account Reconciliation?
Account reconciliation is an important part of the accounting process. Account reconciliation is the process of reconciling your bank statements to Quickbooks to ensure that each transaction in accurately recorded and reflected on Quickbooks.
The purpose of this process is to ensure that no transaction is missed or goes unrecorded. With the large number of transactions nonprofit organizations have, it is important to make sure that all financial activity is recorded and accounted for.
How Often Should You Reconcile Accounts?
Account reconciliation should occur on a monthly or quarterly basis to make sure that every transaction is recorded. The decision to reconcile your accounts monthly or quarterly is based primarily on the number of transactions your organization makes in a month.
If your organization does not have many transactions, the account reconciliation could be done quarterly, although we reconcile the accounts for our clients every month for accuracy.
What Causes Account Discrepancies?
There are a few reasons why there may be account discrepancies, but they mostly fall into the following categories:
Timing
Depending on the situation, there may be times when a transaction is recorded, but it won’t show up on the bank statement due to the timing of the money being cleared.
Missing Transaction
A transaction may not have been recorded on your accounting software. In this case, the transaction will be reflected on the bank statement, but not on the accounting platform.
Accidents
Mistakes can occur in accounting. Sometimes, numbers are mistyped or categorized incorrectly. Either way, account reconciliation can help catch these mistakes.
Fraud
Fraud occurs in all types of organizations, including nonprofit organizations. Frequent account reconciliation can help identify fraud quickly if it is occurring.
Other Areas to Reconcile
Apart from your bank accounts, there are other areas that can and should be reconciled to ensure accurate financial recording
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Keeping a report of unpaid bills can help make sure that expenses are not being booked twice by accident.
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It is important to keep track of invoices, both paid and unpaid, to make sure that your statement of activities is current and unpaid invoices can be collected on sooner rather than later.
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Updating the fixed assets on your balance sheet every so often is important. Record depreciation, add new purchases, or adjust for assets you may have sold over the period.
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Reviewing the schedules for your balance sheet accounts is a good idea when it comes to reconciliation. Update loan balances, endowment accounts, and inventory accounts often.
Accurate Recording with Account Reconciliation
Account reconciliation is included in our services because we want to make sure that the financials you are provided are accurate. Inaccurate bookkeeping can lead to improper decision making and a misunderstanding of the financial health of the organization.
Reach out to us to get started with bookkeeping for your nonprofit organization!
FAQs
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Account reconciliation is included in all of our bookkeeping packages. Our most basic bookkeeping package starts at $499/month for organizations with 1-4 employees and an operating budget under $300,000.
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Our team reconciles your accounts monthly to guarantee accuracy. We want to make sure your books are accurate so you can rely on the financial information we provide to make decisions.
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No, there is no limit to the number of bank accounts or transactions we can manage. Our bookkeeping plans and pricing is based on the number of employees and the operating budget of the organization.
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Access to your bank accounts is not required, however, we do ask that you send us a bank statement from your bank accounts.
