Bank Reconciliation Checklist
A bank reconciliation checklist: match statement lines to the ledger, clear timing differences, investigate odd items and sign off the balance every month.
- Typical schedule monthly
- The checklist 4 sections, 16 items
- Variables
{{account}}{{period}}
Use this checklist to reconcile one bank account, card account or payment provider balance for a period. Most small businesses do it monthly as part of the close. Teams with many transactions reconcile weekly, which makes the month-end close much shorter. Start one run per account, so each reconciliation has its own record and sign-off.
Who owns it
The bookkeeper or the person who posts bank transactions prepares the reconciliation. A second person reviews and signs it off. Ideally that is someone who cannot initiate payments, because reconciliation is the control that catches unauthorised or duplicated payments.
Common pitfalls
- Forcing it to balance. Posting a small "difference" to sundry expenses hides the real problem. Find the cause, even when the amount is small.
- Stale reconciling items. Uncashed cheques and unmatched deposits that are months old are not timing differences any more. Investigate and clear them.
- Trusting bank feeds blindly. Automatic matching rules can match the wrong invoice when amounts are equal. Spot-check the auto-matched lines.
- Using the wrong closing balance. Take the balance from the official statement for the last day of the period, not from the online banking screen a few days later.
Adapt this to your jurisdiction and your accounting system; it is a practical checklist, not accounting advice.
The checklist: Bank reconciliation {{account}} {{period}}
Gather
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Download the official statement for
{{account}}covering the full{{period}} -
Confirm the opening balance on the statement equals the reconciled closing balance of the previous period
If it does not, the previous reconciliation was changed or wrong. Fix that first.
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Confirm the bank feed or import for
{{period}}is complete, with no missing days
Match
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Match every statement line to a ledger transaction
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Spot-check a sample of auto-matched lines for the correct invoice or supplier
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Post bank fees, interest and charges that are not yet in the ledger
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Post or code remaining unmatched statement lines after finding the supporting document
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Check for duplicate postings, such as a payment entered manually and again from the feed
Reconcile
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List outstanding items: payments issued but not cleared, and deposits in transit
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Confirm ledger balance plus or minus outstanding items equals the statement closing balance
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Investigate outstanding items older than one period and clear or escalate them
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Confirm transfers between own accounts appear on both sides in the same period optional
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Revalue the balance at the period-end rate for foreign currency accounts optional
Review and sign off
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Review payments for unknown payees, round amounts or unusual timing
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Second person reviews the reconciliation and signs off
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Attach the statement and the reconciliation report to this run or the close file
Checklist as Markdown
Frequently asked questions
What are the steps of a bank reconciliation?
Get the official statement, check that the opening balance matches last period's reconciled balance, and match each statement line to the ledger. Post missing items such as fees, list the timing differences and confirm that the ledger balance adjusted for those items equals the bank balance. Finally, have someone review it.
How often should you reconcile bank accounts?
At least monthly, before you rely on the month's figures. Businesses with many transactions or tight cash benefit from reconciling weekly, because problems such as a failed customer payment or a duplicate supplier payment are found while they are still easy to fix.
What if the bank reconciliation does not balance?
Check the opening balance first, then look for a missing day in the bank import, duplicates, and amounts entered with digits swapped. A difference divisible by nine often points to transposed digits. Do not post the difference to an expense account; find the cause or escalate it.
Updated