(Even If You’re Not a Bookkeeper)
If you’re like most entrepreneurs, reconciling your bank account might sound about as fun as doing your taxes. But here’s the truth: bank reconciliation is one of the most powerful habits you can build to keep your business financially healthy.
It doesn’t have to be overwhelming. In fact, with just a few steps and the right tools, you can reconcile your accounts like a pro—without hiring one full-time.
At Your Bookkeeper On Call, we help small business owners stay on top of their finances with live, on-demand bookkeeping and DIY coaching. If you’re managing your own books, this guide is for you.
What Is Bank Reconciliation (and Why Should You Care)?
Bank reconciliation is the process of comparing your business’s accounting records to your actual bank statements to ensure everything matches.
Why it matters:
- ✅ Catch errors or double charges
- ✅ Spot missing transactions or deposits
- ✅ Detect fraud or unauthorized activity
- ✅ Maintain accurate financial reports
- ✅ Be fully prepared for tax time
Skipping reconciliations can lead to bad data—and bad decisions. Let’s avoid that.
5 Simple Steps to Reconcile Your Bank Accounts Like a Pro
Step 1: Get Your Tools Ready
Before you start reconciling, gather your essentials:
- Your most recent bank or credit card statement
- Access to your accounting software (like QuickBooks Online, Xero, or Wave)
- A cup of coffee (optional, but recommended ☕)
Pro Tip: If you’re using cloud-based software, make sure your bank feed is connected and updated so your transactions are imported automatically.
Step 2: Match Your Statement Period
Go to your reconciliation tool in your accounting software and select the same date range as your bank statement.
This ensures you’re comparing apples to apples. If your statement runs from the 1st to the 30th, don’t include transactions from the 31st—even if they already show up in your system.
Step 3: Check Off Matching Transactions
Now the magic begins.
Start from the top of your bank statement and work your way down. For each transaction, find its match in your accounting software and check it off as “cleared” or “reconciled.”
Look for:
- Deposits – Match customer payments or income
- Withdrawals – Match expenses, bills, and transfers
Take your time. Accuracy is everything here.
Step 4: Investigate Discrepancies
You may come across:
- Transactions in your bank that aren’t in your books
- Transactions in your books that never hit the bank
- Duplicate or miscategorized entries
Don’t panic. Investigate:
- Is a transaction dated outside the statement period?
- Was it entered twice in error?
- Did a payment fail to clear?
Fix any issues as you go. And don’t forget to attach receipts or notes for context.
Step 5: Confirm the Ending Balance
Once all transactions are matched, your accounting software will calculate the difference between your bank statement balance and your book balance.
If everything’s accurate, the difference should be zero.
✅ If it is: congrats—you’ve successfully reconciled!
❌ If not: go back and review unmatched items or potential errors.
Pro Tip: Even if you’re close (like off by a few cents), resist the urge to “force” it to match. Those pennies add up and may signal a larger problem.
Bonus Tips from Our Bookkeeping Pros
- Reconcile monthly – It’s easier and faster to do 12 short sessions a year than one massive clean-up.
- Use automation – Bank feeds and rules can save hours of manual entry.
- Save documentation – Keep digital receipts and notes tied to transactions.
- Ask for help – If something doesn’t add up, don’t let it sit. Our on-demand team can help review and resolve issues quickly.
Want to Reconcile with Confidence?
At Your Bookkeeper On Call, we specialize in helping small business owners take control of their books—whether you want to do it yourself or get support when you need it most.
Here’s how we can help:
- 🧾 DIY Bookkeeping Coaching – Learn how to reconcile your books with step-by-step guidance.
- 👩💻 On-Demand Bookkeeping Services – Let us reconcile for you, monthly or as needed.
- 🔧 Cleanup and Catch-up Help – Behind on your reconciliations? We’ll get you back on track fast.
Final Word
Reconciling your bank accounts isn’t just about numbers—it’s about trusting your books, making smart business decisions, and avoiding financial surprises.
So whether you’re DIYing your finances or looking for a reliable bookkeeping partner, we’re here to help you build a business that’s organized, compliant, and ready to grow.
👉 Need help reconciling your accounts? Contact us today or schedule a free consultation!.
