Reconciling Accounts

Reconciling your accounts means checking that your Account Book agrees with your bank statement. Once you have allowed for any outstanding payments or receipts that have not yet appeared on the bank statement, the balance in your Account Book should match the balance shown by the bank.

It is good practice to reconcile your accounts regularly, ideally every month. Reconciling little and often makes it much easier to spot and correct any errors. If a discrepancy does arise, you only need to check the most recent transactions, making it much quicker to identify and resolve the problem.

Regular reconciliation also helps ensure that your financial records remain accurate and up to date throughout the year, making your end-of-year accounts much easier to prepare.