Doc · Concept
Bank reconciliation
The process of matching the cash balance in your books to the balance on the bank statement, accounting for timing differences, until the two agree exactly.
Why it matters
Reconciliation is the single check that proves your recorded cash is real. Until an account is reconciled, every report that touches cash — the balance sheet, the cash-flow statement, the P&L via deposits — is unverified. It is the first thing a specialist does in a cleanup and the last thing skipped in a healthy month-end.
Bank reconciliation
How the difference resolves
The book balance and the statement rarely match on the day you look, because some items are in transit: a check you wrote that hasn't cleared, a deposit the bank hasn't posted. Reconciliation lists those outstanding items, applies them, and confirms the adjusted balances agree. When the difference is zero, the account is reconciled for that period.
Where this shows up
QuickBooks cleanup
Unreconciled accounts are the most common reason a cleanup is needed. Reconciliation is the core of the work.
See the serviceProblem: my balance doesn't match the bank
A mismatch between book and bank balance is almost always an incomplete or broken reconciliation.
Questions about reconciliation
How often should accounts be reconciled?
Every account, every month, against the statement. Monthly reconciliation keeps errors small and catchable; letting it lapse is what turns an ordinary month-end into a cleanup.
What if it won't reconcile?
A reconciliation that won't zero out usually means a duplicate, a deleted transaction, or a wrong opening balance. Isolating which one — and whether it's the file or the data — is exactly the kind of triage a specialist does first.
Do credit-card accounts need reconciling too?
Yes. Reconciliation applies to every account that issues a statement — checking, savings, credit cards, and lines of credit. Card accounts are the ones most often skipped, and unreconciled card activity distorts expenses the same way unreconciled bank activity distorts cash.
Is matching bank-feed transactions the same as reconciling?
No. Bank feeds match individual transactions as they arrive; reconciliation is the deliberate month-end check that the ending balance in your books agrees with the statement. A file can have every feed transaction matched and still be unreconciled.