Bank reconciliation checks that transactions and the closing balance in your accounting records agree with the bank statement. It helps identify missing entries, duplicates, timing differences and incorrect coding.
What this means in practice
A transaction appearing in a bank feed does not mean it has been properly reconciled. Transfers between accounts, merchant payouts, loan repayments and refunds need to be understood. If the accounting balance differs from the statement, the difference should be investigated rather than adjusted away without evidence. Regular reconciliation provides a stronger foundation for BAS and business reports.
Your next steps
- Use the complete bank statement
- Check opening and closing balances
- Investigate unmatched transactions
- Document any adjustment
Get help with the next step
If this relates to your business, tell us about your current records and the task you need help with. We can explain our service scope and the information needed before work starts.
General information prepared on 26 September 2026. Rules and individual circumstances can change. Confirm the treatment that applies to you before acting.
Prepared by the Affordable Bookkeeper content team. Our services and practitioner arrangements.
