It is important to ensure that your accounting records are accurate. Reconciling the accounts regularly will help you and your accountant know that your books are complete, accurate, and balanced.

You should reconcile your company file information with any source documents and resources available to you. For example, each month your bank account can be reconciled with the bank statement, suppliers’ balances can be checked against statements, and customers’ balances verified. Typical end-of-month procedures include reviewing your trial balance, reviewing your budgets and cash flow, paying payroll taxes, and purging information that is no longer needed.

End-of-year procedures are carried out at the end of your financial year and include any adjustments you need to make to your company file so that it agrees with your accountant’s final records. If possible, your inventory should be counted, valued, and, where necessary, adjusted in your company file. By closing the year in your company file, you are effectively bringing the company file up to date and removing information not required in the new year.