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What is Reconciliation?
Reconciliation is matching your books against an external record — usually the bank statement — to catch errors, duplicates, and fraud. Done monthly, it takes minutes; skipped for a year, it takes a weekend and an accountant. Every unexplained difference is a problem until proven otherwise.
In practice
The books show $12,400; the bank shows $12,150. Reconciliation finds a $250 client check recorded twice — corrected before it became a tax problem.
Fewer mysteries to reconcile
Clean, numbered invoices mean your books match reality the first time.
Create an invoice — freeFrequently asked questions
How often should I reconcile?
Monthly at minimum; weekly if transaction volume is high. The longer the gap, the harder the detective work.
What are the most common reconciliation differences?
Timing (checks not yet cleared), duplicates, bank fees you didn't record, and transposed digits. Fraud is rare; typos are constant.
My books never match the bank — help?
Start with one clean month: record everything, then compare line by line. The usual culprit is unrecorded fees or personal transactions mixed into the business account.