Increasing Income · Passive Income

Free Money: Step 5 (24 Minutes)

Alright, it’s February 13th and the tax slips have started to arrive. Yay! Even with my rather complex tax situation, soon it will all be wrapped up for another year.

My brain was full for a week or so, so I rightly paused. Some weeks, my brain doesn’t let me do stuff like this. I wait that out. I know that at some point, my brain will turn itself back ‘on’, at which point I will proceed. By starting a process early, there’s always plenty of time for my glitches.

Today I’m approaching one of the steps most intimidating to me: reconciling. Now, remember: Most of this is already done! Why? At least once a week, I download all my income and expenses in my financial tracking software, and ensure the system categorized them correctly. The bulk of the “work” is completed by means of a few minutes each week.

What’s next? In my case, I cross-reference my business income. The scoop: I receive small payments in various currencies. My bank had a heckuva time figuring out how to deposit these. Addressing the bank’s craziness took a year. A year! But it’s done now—we have a simple system that aligns with the banking standards, ensures the money actually ends up in my account, and is easily trackable by me. Everybody’s happy!

In the first two years of cross-referencing, I found that my bank had not deposited several of the cheques I’d brought in. When this error had been noted, I was able to have the cheques reissued, as well as the banking flaw permanently resolved. Again, a hassle. Again, worth it!

This year, I anticipate no such oddities. I’m pretty sure I’ll find that everything sent to me ended up properly credited to my account. But, I check anyway.

I download and print a simple table of what was issued to me. Next to each item, I jot in the amount it converted to. If a cell is blank, I’m missing cash and need to get it back. If every row is filled in, this aspect of my account is reconciled. Done!

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