Bookkeeper how-to
How to Reconcile a Bank Account
Monthly reconciliation catches errors, fraud and missing transactions.
Monthly reconciliation catches errors, fraud and missing transactions. In short: get; start; match, then complete the remaining steps below.
Step by step
Get the bank statement for the month.
Start the reconciliation in your accounting software and enter the statement ending balance and date.
Match each deposit and withdrawal on the statement to the books.
Identify items in the books that haven’t cleared (outstanding checks, deposits in transit).
Record any bank fees, interest or missing transactions.
Investigate and fix any remaining difference until it is zero.
Save the reconciliation report.
Safety reminders for bookkeepers
- Protect financial data with strong passwords and multi-factor authentication
- Verify any request to change vendor bank details by phone
- Separate duties when possible to prevent fraud
- Keep records according to retention requirements
Key terms
Double-entry bookkeeping · Debit · Credit · General ledger · Chart of accounts · Accounts payable (A/P): see the full bookkeeper glossary.