Step 4 — Enter transactions between the start date and the current date
The process of entering transactions is centered on the bank account, since virtually all transactions eventually affect the bank account. Since you've carefully calculated your beginning balances this should be easy.
Enter transactions month-by-month, taking time to reconcile your accounts at the end of each month. After that you should create invoices and record payments received against those invoices or beginning customer balances, then make the deposits to the bank accounts. Enter bills, payments made on accounts payable, and record checks written out of the bank account. Use your vendor statements to enter finance charges and verify that your balances agree with your vendors' balances.
As you complete each month, reconcile your bank statement, credit card. and vendor account balances to verify that all amounts have been recorded accurately.
Go to Step 5 and Step 6