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We are in our first year of starting a small LLC. We are using Quickbooks Online and things are going well. The only exception is that, due to our lines of credit and bank accounts being personal (shared with business), we are having trouble reconciling our accounts. Is this completely necessary? If so, why?

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I would suggest opening a new account (credit card and bank) for just your business. This protects you in multiple ways, but is no bigger burden for you other than carrying another card in your wallet. Then QB can download the transactions from your website and reconciling is a cinch.

If you got audited, you'd be in for a world of pain right now.

From personal experience there are a few charges that go unnoticed that reconciling finds every month at our business. We have a very strict process in place, but some things slip through the cracks.

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  • You say "open a new cc and bank account" but what happens to my previous purchases? Is reconsiling just an error-check? – Brian David Berman Aug 10 '11 at 0:15
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    @brian You can either go through and manually check each of your earlier entries, or just make new accounts, and start from now on. Up to you. – Michael Pryor Aug 10 '11 at 15:57

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