How to Reconcile Disbursements Monthly
Reconciling disbursements at month-end is crucial for accurate books. Start by comparing your accounting records with bank statements, making sure every payment matches. Look for discrepancies, such as missing entries, duplicate transactions, or wrong amounts. Make adjustments where needed and note the reasons for any unusual activity. This monthly checkup prevents long-term errors, supports budgeting efforts, and ensures compliance with tax authorities. Even small businesses benefit from this habit—it keeps your financials clean and audit-ready.