You checked your bank account, saw a healthy balance, and did a little happy dance in your office (tiara optional). But before you Venmo your cousin back for that bachelorette brunch or splurge on another scented candle “for the office,” pause. That balance might be bluffing.
Let’s talk about why your bank balance is not your business’s truth-teller—and how to actually know what’s going on with your money.
The Royal Illusion:
Just because your bank account says you have $10,000 doesn’t mean you really have $10,000. Why? Because your bank doesn’t know:
- You wrote checks that haven’t cleared
- You invoiced a client three weeks ago and still haven’t been paid
- You forgot that you scheduled your annual software subscriptions to hit this week
- You paid your assistant with Venmo, and forgot to record it
It’s like asking your court jester for financial advice. Charming, but risky.
Why You Need to Reconcile Like Royalty:
Your accounting software and your bank account need to be BFFs—but they don’t always talk. Reconciling means comparing your records to the bank’s and making sure every coin has been counted. It’s how you spot:
- Missing transactions
- Double entries
- Fraud (yes, even royal treasuries have been looted before)
How to Keep the Lies at Bay:
- Reconcile Monthly – Like brushing your teeth, but for your business.
- Use Your Reports – Check your Profit & Loss and Balance Sheet, not just your bank feed.
- Tag Transactions Properly – “Ask My Accountant” is not a long-term plan.
- Set Reminders for Recurring Expenses – Your CRM is loyal… but expensive.
- Don’t Spend From the App – Your QBO app isn’t your wallet. Check the real numbers.
Countess Proclamation:
“If the Countess had a dollar for every time a client said, ‘But I had money in the bank!’—she’d have enough to open a castle-themed co-working space.”
Final Tip:
Your bank account is a snapshot. Your books are the full story. Don’t make decisions based on half the tale. Be the Queen (or King) who rules with information, not vibes.
