How to Reconcile Bank Statements Like a Pro

Reconciling your bank statements is a crucial financial task that ensures your records match those of your bank. This process helps detect discrepancies, prevent fraud, and maintain accurate financial statements.

Here’s a step-by-step guide to mastering bank reconciliation like a pro.

Before you begin, collect all necessary records, including:

Start by checking your bank statement balance against your recorded balance in your financial records. Discrepancies may occur due to outstanding transactions or bank fees.

Go through each transaction and ensure that deposits, withdrawals, and payments appear on both your records and the bank statement. Pay attention to:

Some transactions may be pending or missing due to processing delays. Account for:

Adjust your records accordingly to reflect the correct balance.

If you find errors, investigate them thoroughly:

Once discrepancies are resolved, update your financial records by:

Ensure that your adjusted balance matches the statement balance. If there’s still a difference, repeat the review process to spot overlooked discrepancies.

To streamline reconciliation, make sure you document and refine your steps in order to

In case of fraud, double clearing of checks, missing items, etc; these must be brought to the attention of your bank in a timely manner. If you are too late in advising your bank, they may refuse to help you fix it. Also, you may not have enough money to pay the bills and expenses you planned, leading to bounced checks and bigger issues.

You are busy and want to focus on your business. Let us at Wendy Corp do the work for you and keep things straight and understandable. We are Pros at what we do just as you are the Pro at what you do. Just as you could fix your own car, what is your time worth to you. We maintain accurate records and reconciliations for our clients and catch issues immediately.