The Simple Trick to Catching Most Bookkeeping Errors

We’re talking about one simple trick that can help you catch most bookkeeping errors—and that trick is doing a bank reconciliation.

Now before you zone out, hear me out. I know the term bank reconciliation sounds intimidating to a lot of business owners, but I promise to break it down in a simple way. Not only can this process help you catch mistakes like duplicates or missed entries, it can also help you detect fraud. And that last part is a big deal.

In fact, I’ve talked to two clients this year who discovered their bookkeeper was stealing from them. Heartbreaking, right? In both cases, they told me they felt uneducated. They trusted their bookkeeper completely, saw cash in the bank, and assumed everything was fine. But because they didn’t know what they didn’t know, they were taken advantage of.

That’s why I’m so passionate about giving you the education to protect yourself. You don’t need to become a bookkeeping expert—but understanding the basics can give you confidence, help you make better decisions, and ensure you’re not blindly relying on someone else to tell you what’s going on in your business.

So, what exactly is a bank reconciliation?

It’s the process of comparing your bookkeeping records with your actual bank records to make sure everything matches.

And you might be thinking, Well, I use software like QuickBooks that pulls transactions in automatically—I should be good. Or, I manually enter everything from my bank statements, so I’m fine. But here’s the truth: things still go wrong. In QuickBooks, I’ve seen random duplicates appear or entire days where transactions don’t sync. And if you’re entering things manually, it’s easy to accidentally skip a day or type in the wrong amount.

Bank reconciliations help you catch all of that—and they’re worth doing. I’ll walk you through how to do one in the next part of this episode, but just know: this small habit can save you big time.

Let’s talk about some of the most common reasons your books and bank records might not match—and how to actually do a bank reconciliation.

You may have accidentally duplicated a transaction. Or you might’ve made a simple typing error—what we call “fat fingering” in the accounting world. That’s when you hit the wrong key, type too many digits, or skip one altogether. We’re human. Even with software, mistakes happen. That’s why it’s so important to compare your bookkeeping records with your actual bank statement.

So, how do you do this?

Step one: Gather the right documents.

That means pulling the actual bank statement—not just a list of transactions from your online banking portal. Look for the official PDF version or paper statement that shows your full balance and the cleared transactions.

Step two: Compare every transaction.

Go line-by-line and ask: Does every transaction on my bank statement appear in my bookkeeping records? If something is missing or duplicated, you’ll spot it here.

Now, there are a few valid reasons why the two might not match exactly. For example, if you’ve written a physical check, it may show up in your books but not yet clear the bank if the recipient hasn’t cashed it. That’s okay.

But what you’re really watching for are:

• Duplicate transactions
• Missing expenses
• Incorrect amounts

Once you’ve found the discrepancies, go back and fix them—either by removing duplicates, adding missed expenses, or correcting amounts.

“Do I really have to do this?”

Yes—absolutely. And here’s why: If your bookkeeping records aren’t accurate, then the numbers you’re using to make business decisions aren’t accurate either. And that can cause real harm—like missing out on deductions or paying more taxes than necessary.

Bookkeeping isn’t just about compliance. It’s about clarity. It’s about knowing how your business is really doing and using that insight to grow confidently.

If you’ve ever looked at QuickBooks and felt totally overwhelmed by the reconciliation process—you’re not alone. And I’m here to help. Book a call with me, and I’ll walk you through it step-by-step so it feels simple and doable.

One last thing: bank reconciliation is your chance to catch fraud.

You can spot charges you didn’t authorize or transactions that just don’t make sense. It’s a final sweep that gives you peace of mind and lets you say: Yes, I know what’s happening with my money.

And that, more than anything, is what I want for you—confidence, clarity, and control over your business finances.

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