Accounting All-in-One For Dummies

Chapter 4

Reconciling Accounts and Closing Journal Entries

In This Chapter

Reconciling accounts and making adjustments

Confirming that your journals are correct

Gathering journal information for closing

Posting adjustments to the general ledger

Examining your journals in a computerized system

As the old saying goes, “The devil is in the details.” When it comes to your bookkeeping, especially if you keep your books manually, those details are in the accounts and journals you keep. And any errors in those tiny details can lead to big problems down the road. To ensure accuracy, you must reconcile your accounts and prove out your journals and close them at the end of an accounting period, which is what this chapter is all about. Within these pages, you also find out how to post all corrections and adjustments to the general ledger after you make them in the appropriate journal. (To find out how to set up your journals, see Book I, Chapter 3.)

Reconciling Bank Accounts

Reconciling bank ...