Why This Matters

A bank reconciliation compares what is in your accounting system with what actually cleared the bank.

It helps identify:

• Missing transactions

• Duplicate entries

• Bank fees

• Unrecorded payments

• Deposits recorded incorrectly

• Errors or unusual activity

Without regular reconciliations, financial reports may look accurate even when they are not.

Common Mistakes

• Reconciling only at year-end

• Assuming bank feeds automatically make the books correct

• Ignoring old unreconciled transactions

• Forcing a reconciliation to balance without finding the cause

• Forgetting to reconcile credit cards

• Leaving closed accounts unreconciled

Harvest’s Recommendation

Complete reconciliations every month after statements are available.

Do not simply accept differences.

If something does not match, determine why before moving on.

Regular reconciliations are one of the simplest ways to keep your bookkeeping reliable.

Good to Know

Bank feeds save time, but they do not replace reconciliation.

A transaction appearing in your accounting software does not necessarily mean it has been categorized correctly or recorded only once.

When It’s Time to Get Help

Consider getting bookkeeping help if:

• Accounts have not been reconciled in several months

• Your books and bank balances are significantly different

• You have large unexplained reconciliation adjustments

• Old transactions continue appearing every month

• You do not trust the balances in your accounting system