How do I know if my books are accurate?
The single most important check is bank reconciliation. Every bank account and credit card should reconcile to the penny against your statements at the end of each month. If your QuickBooks balance matches your bank balance after accounting for outstanding checks and deposits in transit, that account is reconciled. If it doesn’t match, something is wrong. Either a transaction is missing, duplicated, or recorded for the wrong amount.
After reconciliation, look at your balance sheet. This is where most bookkeeping errors hide. Check for negative bank balances that shouldn’t exist, accounts receivable that includes invoices customers paid months ago, or liability accounts with unexplained amounts. Every number on the balance sheet should represent something real. If you see a line item and can’t explain what it is, that’s a problem worth investigating.
Open your profit and loss report and scan through the expense categories. Do the amounts make sense for what your business actually spent? If your office supplies show $8,000 for the quarter and you know you barely bought anything, transactions are probably miscategorized. Look at your revenue too. Compare total income on your P&L to what you see in your bank deposits. They won’t match exactly because of timing, but they should be in the same ballpark.
Check for common red flags that indicate messy books. Uncategorized or “Ask My Accountant” transactions are a sign that someone kicked the can down the road. Duplicate transactions inflate both your income and expenses and throw off everything. Transfers between accounts recorded as income or expenses will make your revenue or spending look higher than it actually is.
If you use accounts receivable or accounts payable, pull up the aging reports. Are there invoices marked as open that customers already paid? Are there bills showing as unpaid that you know you settled? These reports should reflect reality. If they don’t, payments were recorded incorrectly or not matched to the right invoices.
One practical test is to pick any five transactions at random from your books and trace them back to the source document. Find the bank statement entry, the receipt, or the invoice. If all five check out, that’s a good sign. If even one doesn’t match, there may be broader issues worth digging into.
The truth is that most business owners are great at running their business but don’t have the time or background to audit their own books regularly. That’s completely normal. Having a QuickBooks ProAdvisor in Jacksonville review your financials means someone with trained eyes is catching errors before they compound into bigger problems.
If you’ve gone months or years without verifying any of this, your books might need more than a quick review. Catch-up bookkeeping can bring everything current and clean so you’re starting from a reliable foundation. Once the books are accurate, staying on top of monthly reconciliations and reviews keeps them that way going forward.
The First Coast's Trusted Bookkeeping Partner
The Next Step:
A Free Discovery Call
Tell us where things stand with your books. Whether you're months behind or just looking for reliable bookkeeping going forward, we'll give you an honest assessment and a clear price.
More Questions
What's the difference between accounts payable and accounts receivable?
Accounts payable is money your business owes to others. Accounts receivable is money others owe to your business. Together they give you a clear picture of your cash flow and financial obligations.
Read answerHow should a real estate investor track rental income and expenses?
Track everything by individual property using separate classes or projects in your accounting software. This gives you per-property profitability and makes Schedule E filing straightforward at tax time.
Read answerHow does a contractor know if a job is actually profitable?
You need to track every dollar of cost against that specific job, including your own labor and a share of overhead. Revenue minus direct costs alone doesn't tell the full story.
Read answerHow do I get customers to pay their invoices on time?
Late payments usually come from unclear terms, friction in the payment process, or no consequences for paying late. Fix those three things and most of your collection problems go away.
Read answerIs my financial data safe with a virtual bookkeeping service?
Yes, when the bookkeeper follows proper security practices. Cloud accounting tools like QuickBooks Online use bank-level encryption, and you control exactly what level of access your bookkeeper has to your accounts.
Read answerHow should an HVAC or plumbing company handle bookkeeping?
Separate service revenue from installation revenue and track job costs on larger projects. Your chart of accounts should reflect how your business actually operates, with distinct revenue streams and cost tracking that shows profitability by type of work.
Read answer