Bank & Credit Card Reconciliation
Match every transaction in your books to the bank statement. No exceptions.
Why reconcile
Reconciliation catches missing transactions, duplicates, fraud, and miscategorizations. An unreconciled account is an unverified account, and investors notice.
The process
Import bank transactions, match them to entries in your software, investigate anything that doesn't match, and confirm the ending balance ties. Most software has a reconcile tool that walks you through it.
Reconciling discrepancies
Common culprits: outstanding checks, deposits in transit, bank fees you forgot to book, and timing differences at month-end. Each has a standard treatment.
Key takeaways
- Reconcile every account, every month.
- Match transactions; investigate every exception.
- Outstanding items are fine — unexplained ones are not.