Prep your materials
Pull the monthly statement, your ledger (or accounting software), and pending items list.
Match starting balances
Ensure last month's ending balance equals this month's beginning balance in your books.
Tick-and-tie transactions
Mark each deposit and withdrawal; note outstanding cheques, pending deposits, and bank-only items (fees, interest).
Adjust and document
Record bank fees/interest, fix duplicates, and attach notes for any adjustments.
Finalize & archive
Your adjusted book balance should equal the bank's ending balance. Export a reconciliation report and store securely.
Frequently Asked Questions
How often should I reconcile?
Monthly at minimum; weekly for high-volume businesses.
What if numbers don't match?
Re-check dates, pending items, and look for transposed digits or missed entries.