Reconciling a bank statement
The monthly check that your books and your bank agree, in plain steps.
Bookkeeping · Version 1 · 2 min read · Reviewed by Meridian Review Team · Sep 15, 2026
What reconciling is
You compare the transactions in your books to the bank statement and confirm they match.
Steps
- Start with the statement's opening balance, which should equal last month's closing balance.
- Tick each transaction on the statement against your books.
- List anything on one side but not the other.
- Confirm the ending balance matches.
Common causes of a mismatch
- A transaction recorded twice or not at all.
- A typo in an amount.
- A payment that has not cleared yet.
When it will not match
Stop and ask. Forcing a match hides the error.
Why it matters
A reconciled account is an account you can rely on at filing time.