Checking your records against reality.
WHAT IT MEANS
Comparing your records against the bank statement, and accounting for every difference.
WHY IT MATTERS
It catches missing entries, duplicates and errors.
And unauthorised transactions.
HOW OFTEN
Monthly, at minimum.
HOW TO DO IT
Take the statement Tick off every transaction against your records Investigate anything unmatched
WHAT UNMATCHED ITEMS USUALLY ARE
A transaction you did not record A record with no matching transaction A timing difference An error
WHAT TO INVESTIGATE IMMEDIATELY
Any transaction you do not recognise.
THAT IS THE SECURITY BENEFIT
Reconciliation is how unauthorised transactions are found.
WHAT TO DO AT THE END
Confirm your recorded balance matches the statement.
If it does not, something is missing.
WHAT NOT TO DO
Adjust your records to match without understanding why Skip months
WHAT TO RECORD
That the reconciliation was done, and by whom.
