Running Tests for Bookkeeping Accuracy
All the time it takes to track your transactions isn’t worth it if you don’t periodically test to be sure you’ve entered those transactions accurately. If the numbers you put into your bookkeeping system are garbage, the reports you develop from those numbers will be garbage as well.
Proving out your cash
The first step in testing out your books includes proving that your cash transactions are accurately recorded. This process involves checking a number of different transactions and elements, including the cash taken in on a daily basis by your cashiers and the accuracy of your checking account.
Testing your balance
After you prove out your cash, you can check that you’ve recorded everything else in your books just as precisely. Review the accounts for any glaring errors and then test whether or not they’re in balance by doing a trial balance.
Doing bookkeeping corrections
You may not find your books in balance the first time you do a trial balance, but don’t worry. It’s rare to find your books in balance on the first try. You can make some common adjustments as you prove out your books at the end of an accounting period.