Bank reconciliation compares statement activity with the accounting records and explains differences such as outstanding items, fees, omissions or errors. A feed download is not the same as a reviewed reconciliation. The period, opening position and supporting explanations all matter.
Get help with your monthly booksPractical records guidance · Updated October 16, 2026 · Fictional examples
Start with the correct statement and authoritative accounting file. Check the last completed reconciliation and opening balance. Mixing accounts or dates can create a difference that no amount of transaction matching will explain.
An outstanding check may be legitimate timing; an unrecorded bank fee may need an entry; a duplicate may require a careful correction. These are different causes. Do not add a generic adjustment simply because it makes the displayed difference zero.
Illustrative example · Fictional data
Illustrative example: a statement closes at $5,000 and a valid $200 issued check has not cleared. The adjusted statement position is $4,800, matching the books in this simplified case. The check already exists in the books; entering another expense would duplicate it.
No. Statement matching and financial classification are different checks. An item can match the bank while belonging in the wrong account.
Investigate the prior reconciliation and changed transactions before reconciling the next month. Historical issues may require cleanup.
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