Bank reconciliation

Bank reconciliation involves verifying that your accounting records match your bank account. You compare what you’ve recorded in your books with the statement provided by the bank, then explain any discrepancies: a check that hasn’t been cashed yet, bank fees, or a data entry error.

At a glance

Compare your accounting records with your bank statement
Identifying and explaining each discrepancy: checks not yet cashed, fees, data entry errors
To be done every month, as soon as the statement arrives
The goal: accurate figures and reliable financial statements (the business’s financial profile)

Why it matters

Imagine writing down every expense in a notebook but never comparing it to your actual receipts: after a year, there’s no way to know if the notebook is accurate. Reconciliation is exactly this verification process, but between your accounting records and your bank. Without it, an error or fraud can go unnoticed for months, and the bill can skyrocket come tax time. Bankeo connects you for free with a vetted accountant or CPA who handles this every month at no cost to you, and we’re here to support you every step of the way.

Frequently asked questions

What exactly is bank reconciliation?

It involves comparing, line by line, your accounting records with your bank statement and then explaining any discrepancies. Example: a check that you’ve recorded but that the recipient hasn’t cashed yet.

How often should you do it?

Ideally, this should be done every month, as soon as your bank statement arrives. The longer you wait, the more discrepancies accumulate and become difficult to trace, which can skew your financial statements (the business’s financial picture).

Who can handle my bank reconciliation?

A bookkeeper or accountant does this for you, month after month. Bankeo connects you with a vetted accountant or CPA at no cost to you, and we’re here to support you every step of the way.