Recommended frequency
| Task | How often |
|---|---|
| Record sales and bills | Weekly |
| Categorise bank transactions | Weekly |
| Bank reconciliation | Monthly, or weekly if busy |
| Chase overdue invoices | Weekly |
| VAT review | Each quarter, before the return |
| Review profit and cash | Monthly |
What bank reconciliation is
Reconciling means checking that every entry in your books matches your bank statement. When your accounting software balance equals your bank balance and every transaction has been matched, the account is reconciled.
Bookkeeping done for you
Records kept up to date and reconciled, ready for year end and for your accounts.
Get a bookkeeping quoteBookkeeping serviceHow to reconcile
- Open your bank statement for the period.
- Match each line with an invoice, bill or journal.
- Investigate anything unmatched.
- Make sure the closing balance agrees.
- Repeat for each bank, credit card and loan account.
Why it matters
Unreconciled transactions hide errors, duplicate entries and missing receipts. They cause wrong VAT returns and incorrect profit figures.
Weekly checklist
- Upload or photograph receipts.
- Check the bank feed for new items.
- Send invoices.
- Record payments received.
Monthly checklist
- Reconcile bank and card accounts.
- Review the profit and loss report.
- Check you are on track for tax and VAT.
Quarterly and yearly
Before each VAT return, reconcile and review. Before year end, check fixed assets, stock, loans and director balances. See preparing accounts.
Frequently asked questions
Is monthly bookkeeping enough?
For most micro-entities, yes, as long as you reconcile and reconcile before deadlines. Weekly is better if you have many transactions.
What if I am months behind?
Catch up in order, month by month, starting with the oldest bank statement. An accountant can help.
Keep reading
Why Good Bookkeeping Matters for Micro-Entities
Bookkeeping is the day-to-day record of your income and spending. Done regularly it makes your accounts faster and cheaper, protects you from penalties and shows you where your money is going.
Bookkeeping and softwareHow to Keep Accurate Business Records (Paper vs Digital)
UK companies must keep accounting records for at least six years. Digital records are easier to store, search and share, and they are required for VAT under Making Tax Digital.
Bookkeeping and softwareBest Accounting Software for Micro-Entities and Small Companies
The best accounting software is the one that is MTD compatible, connects to your bank, files accounts at Companies House or works smoothly with your accountant. Xero, QuickBooks, FreeAgent and Sage are the usual choices.