Bank reconciliation that helps prove your books match the bank

Why reconciliation matters

A bank balance and an accounting balance can differ because of missing entries, duplicate records, timing differences or errors. Reconciliation is the process of identifying and explaining those differences.

Resolve differences before they flow into reports

Unreconciled activity can distort cash and profit information. Reviewing differences early makes later reporting easier to trust.

Use reconciliation as a completeness check

Reconciliation helps test whether the books reflect actual bank activity, but it does not by itself prove that every transaction has the correct accounting or tax treatment.

Keep the source record available

The most useful workflow lets a reviewer move from the reconciled figure back to the underlying transaction and supporting information when needed.

Frequently asked questions

What is bank reconciliation?

It is the process of comparing accounting records with bank activity and investigating differences so the records can be brought into agreement.

How often should a business reconcile its bank?

Frequency depends on transaction volume and business needs. Regular reconciliation generally makes differences easier to identify and resolve.

Does a reconciled bank mean the accounts are fully correct?

Not necessarily. Reconciliation checks agreement with bank activity, but transactions can still be categorised or treated incorrectly.