Small business guide
Reconciling means checking that your books match your bank statement. It catches missed entries, duplicates and errors while they are still easy to fix.
✓ Checking what you qualify for does not affect your credit score.
Your books show what you recorded. Your bank statement shows what actually cleared. Reconciliation compares the two and explains every difference. Doing it monthly means a small error never becomes a big one.
| Step | What to do |
|---|---|
| 1 | Get the statement for the month and your books for the same period |
| 2 | Start with the ending balance on the statement |
| 3 | Add deposits you recorded that have not cleared yet |
| 4 | Subtract checks and payments that have not cleared yet |
| 5 | The result should equal the balance in your books |
| 6 | If not, look for missed, duplicate or mistyped entries and fix them |
Reconcile every account, including credit cards. Reconcile on a set day each month. Accounting software can import transactions and suggest matches, but still review them. For more see reconciliation.
Clean books make a funding review faster, because the numbers a funder reads in your bank statements match what you can explain. We fund from $25,000 to $5,000,000, decisions move fast, and funding can arrive in as little as 24 hours for qualified businesses. We read about three months of business bank statements, consider owners with a FICO score of 500 or above, and sole proprietors can apply.
See bookkeeping habits that make funding easier and the financial statements funders want, then start your application. It takes about five minutes and begins with a soft credit pull.
Monthly is standard. High-volume businesses may do it weekly.
Narrow it down by week, then by amount. A difference equal to a transaction amount points to a missing or duplicate entry.
Not usually. An accountant can help if you have repeated differences.
Yes, the same way, against the card statement.
No. That term has a different meaning for advances. See MCA reconciliation.
Same-day decision. Applying takes a few minutes and will not affect your credit score.
