Reconcile Checking Account Balance Checkbook


Some of the transactions affected may include ATM service charges, check printing fees. Checking accounts are an important part of modern life, and reconciling them is an essential part of maintaining financial health. The more you understand the process and know what to look for, the easier it will be.

checking account

If you use double-entry accounting in your business, you need to do account reconciliations monthly. The most important account reconciliation your business can perform is the bank reconciliation. Match all checks listed in the bank statement as having cleared the bank to those listed in your check register. Put a check mark next to each check in your check register that matches the checks listed on the bank statement. Reconciling your bank accounts also offers a layer of protection against embezzlement and fraud.

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For instance, e-commerce businesses may struggle with accounting processes due to a large number of the sales channels they use. Reconciliation tasks include balance checking, identifying duplicate entries, and correcting mistakes where necessary. These routines may feel like a lot of work, but they help keep the accounts neat and tidy so that we’re able to see clearly how a business performs. When you’re reconciling your checking account, you should check the transfer of funds to make sure that the amounts are correct. You can do this by looking at the “to” and “from” fields on each transaction. The transfer of funds can be confirmed by looking at each entry and making sure it corresponds to the amount transferred to the account.

Here’s an overview on how to do accounts reconciliation to ensure your company’s financial positions stay accurate. Consider performing this monthly task shortly after your bank statement arrives so you can manage any errors or improper transactions as quickly as possible. Before the reconciliation process, business should ensure that they have recorded all transactions up to the end of your bank statement.

Financial statements provide a snapshot of a company’s financial health. They give a broad overview of a business and serve as an indication of its intercompany financial management, profitability, solvency, and liquidity. However, these indicators are only good when you reconcile the accounts properly.


When you reconcile accounts, you compare two or more sources of a company’s accounting to check for errors and bring them into agreement. A reconciliation is a crucial process for businesses of all sizes to maintain accurate financial records. That’s why manual reconciliation is less than ideal in most cases. Look out for any inconsistencies between transactions that show up in both your bank statement and your cash book. It involves reviewing each individual transaction to see if the amount captured matches the actual amount spent. Documentation review tends to be more accurate because it’s based on real information instead of estimates.

reconciliation form

Make a list of all transactions in the bank statement that are not supported, i.e., are not supported by any evidence such as a payment receipt. Reconciling an account helps to explain the difference between two financial records, such as a bank statement and a cash book. Accountants to explain the difference between two financial records, such as the bank statement and cash book.

Duplicate payments

Or there may be a delay when transferring money from one account to another. Or you could have written a NSF check and recorded the amount normally in your books, without realizing there wasn’t insufficient balance and the check bounced. When you “reconcile” your bank statement or bank records, you compare it with your bookkeeping records for the same period, and pinpoint every discrepancy. Then, you make a record of those discrepancies, so you or your accountant can be certain there’s no money that has gone “missing” from your business. If you use accounting software you can skip this step, as it’s completed automatically.

  • Look out for any inconsistencies between transactions that show up in both your bank statement and your cash book.
  • Use Synder to connect your payment platforms, such as Stripe, Square, Shopify Payments, or PayPal, among others, with your accounting software.
  • Once you’ve figured out the reasons why your bank statement and your accounting records don’t match up, you need to record them.
  • These items are typically service fees, overdraft fees, and interest income.

This may occur if you were subject to any fees, like a monthly maintenance fee or overdraft fee. For interest-bearing accounts, a bank adjustment could be the amount of interest you earned over the statement period. Ideally, you should reconcile your bank account each time you receive a statement from your bank. This is often done at the end of every month, weekly and even at the end of each day by businesses that have a large number of transactions.

Step 3: Compare checks and adjust bank total

Differences that are detected when reconciling the accounts are called discrepancies. Account reconciliation definition is as follows – a process of making sure all the transactions have been accounted for. This could happen because of a human error or because the company used a wrong set of standards to account for their transactions.


However, the account reconciliation process usually takes place at the end of the accounting period to ensure the general ledger account balance is complete and accurate. Your checking account balance is typically reported on a monthly basis and is listed on your bank statement. You might also have a variety of other statements related to your checking account that you need to reconcile on a quarterly or annual basis. With many banks, you can open a checking account for free and be able to access your funds at any time – although you may have to pay small fees for certain transactions. Depending on your financial situation, you can open various types of checking accounts. There could be transactions unaccounted for in your personal financial records because of a bank adjustment.

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If you’ve fallen behind on your truckers bookkeeping service, use our catch up bookkeeping guide to get back on track . If you use the accrual system of accounting, you might “debit” your cash account when you finish a project and the client says “the cheque is going in the mail today, I promise! Then when you do your bank reconciliation a month later, you realize that cheque never came, and the money isn’t in your books . If you do your bookkeeping yourself, you should be prepared to reconcile your bank statements at regular intervals . If you work with a bookkeeper or online bookkeeping service, they’ll handle it for you. Just because you don’t have any transactions in your general ledger doesn’t mean that something isn’t going on with your bank accounts.

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If you find any errors or omissions, determine what happened to cause the differences and work to fix them in your records. Outstanding checks are those that have been written and recorded in cash account of the business but have not yet cleared the bank account. This often happens when the checks are written in the last few days of the month.

If you’re auditing your account, confirming the overdraft amount can be done by looking at the interest charged on overdrafts in the account. This may require going back several months in order to find the issue, which is why reconciling each month is so important.

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