Bookkeeping and tax services for small businesses in The Woodlands and Greater Houston area.

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How often should a small business reconcile bank and credit card accounts?

Monthly is the standard. Reconciling your bank and credit card accounts once a month gives you the right balance of catching errors quickly while not overwhelming your workflow. Most bank statements close monthly, which makes this a natural rhythm for the work.

Bank feeds are not reconciliation. Many small business owners connect their bank accounts to QuickBooks and assume the work is done. The transactions download automatically, so everything must be accurate. Not quite. Bank feeds pull in raw data, but that data still needs review. You’ll find duplicates where the same transaction imported twice. You’ll find uncategorized transactions sitting in an “ask my accountant” bucket or coded to a generic category that tells you nothing useful. You’ll find missing transactions that didn’t import at all because of sync issues or timing.

Reconciliation means comparing your books to your bank statement line by line and confirming they match. It means investigating discrepancies. A charge you don’t recognize could be fraud. A missing deposit could mean a check bounced. A duplicate could mean you paid a vendor twice. These problems don’t fix themselves, and bank feeds don’t flag them for you.

Monthly reconciliation catches unauthorized charges, bank errors, duplicate payments to vendors, transactions coded to the wrong category, deposits that cleared differently than expected, and fees you forgot about. Without this review, your financial reports are unreliable. You might think you have more cash than you do. You might miss a fraudulent charge for months before noticing.

Some businesses benefit from weekly reconciliation. High-volume operations like restaurants or retail stores process so many transactions that monthly review becomes overwhelming. Weekly keeps the volume manageable. But most small businesses don’t need that frequency. Full-service bookkeeping is built around monthly reconciliation because it’s the right cadence for most companies.

The key is actually doing it. Planning to reconcile monthly and then letting three months stack up defeats the purpose. When reconciliation falls behind, small errors compound. A $50 mistake in January becomes a frustrating mystery by April. That’s when bookkeeping cleanup and catch-up services become necessary, turning routine maintenance into a larger project.

If monthly reconciliation isn’t happening consistently in your business, the issue is usually time or knowledge. Either you don’t have time to sit down and do it, or you’re not confident doing it properly. Both problems have the same solution. Get help before small errors become big problems.

Greater Houston's Small Business Bookkeeping Partner

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More Questions

What records should I gather before hiring a bookkeeper?

Gather your bank and credit card statements, any accounting software access, prior tax returns, and supporting documents for income and expenses. Having these ready helps your bookkeeper get started faster and keeps costs down.

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What financial reports should a business owner review every month?

Every business owner should review the profit and loss statement, balance sheet, and a cash flow or cash position report each month. Add accounts receivable aging, accounts payable aging, and budget-versus-actual if you work with a budget.

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What does full-service bookkeeping include for a small business?

Full-service bookkeeping includes transaction categorization, bank and credit card reconciliation, and monthly financial reports. Pricing typically starts at $199 per month and depends on your transaction volume.

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How far back can catch-up bookkeeping clean up old QuickBooks records?

Catch-up bookkeeping can cover months or years of old records. The real limit isn't time but documentation. Bank statements, receipts, the condition of your QuickBooks file, and tax deadlines determine what's possible.

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How do I know if my books are too messy to file taxes?

Warning signs include unreconciled bank accounts, mixed personal expenses, old undeposited funds in QuickBooks, negative balances, and unexplained loans or transfers. If you can't trust your financial statements, a tax preparer won't be able to work with them without cleanup first.

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SRC Bookkeeping & Tax is a Woodlands-based bookkeeping and tax practice serving small businesses across Greater Houston. Founded by Shane Christenson with experience in banking, public accounting, and nonprofit finance. We help business owners keep their records organized and their taxes handled.

Location

29349 Sycamore Cave Ln, The Woodlands, TX 77386

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