519: Using Financial Reconciliation To Keep Your Construction Business On Track

<h1 style="text-align: center;"><span style= "color: #0000ff;"><strong>This Podcast Is Episode Number 519, And It's About Using Financial Reconciliation To Keep Your Construction Business On Track</strong></span></h1> <p> </p> <p><span style="color: rgb(0, 0, 0);">As a small business owner, you're likely already aware of the importance of keeping your finances in order. Financial management goes deeper than paying your bills on time and collecting invoices (although those are also important). It involves regularly checking your financial situation to ensure your accounts are in order, your records are up-to-date, and you're spending within your budget.<br /> <br /> Among those activities, financial reconciliation is vital in keeping your finances and business on track. Force reconciliations can cause your net income to be over or understated, which means you pay too much in taxes now or too little now and the rest later with penalties and interest because the IRS can ask for a copy of your bookkeeping record. </span></p> <p> </p> <p><span data-preserver-spaces="true">Here's what you should know about financial reconciliation and how it can help your construction business.</span></p> <p style="font-weight: bold;"><span style="color: #0600ff;">What is financial reconciliation?</span></p> <p><span data-preserver-spaces="true">Financial reconciliation is a process of ensuring your financial records are consistent and accurate. When you conduct a financial reconciliation, you review financial statements and compare them with your bank statements, credit card statements, vendor statements, and other relevant financial records, such as invoices. </span></p> <p><span data-preserver-spaces="true">As you do this, you'll look for errors or discrepancies–for example, if a payment appears on your bank statement but not your accounting records or the costs are for different amounts on different records. When you conduct a financial reconciliation, you want to ensure that the money in your bank account matches the money your fi