--- title: "How to Reconcile a Bank Account (With Example) | MCC" description: "Step-by-step bank reconciliation, what to do when it will not balance, and how often to do it. Worked example." url: "https://mcc-solutionsnj.com/bookkeeping/guides/how-to-reconcile-a-bank-account" --- Bookkeeping guide · Updated October 7, 2026 # How to reconcile a bank account (and why it matters) Reconciliation is the check that says your books match reality. It is the most important monthly task in bookkeeping. By [Matthew Coleman](/about), MCC Solutions **Quick answer.** Reconciling a bank account means comparing your accounting software's transactions to the bank or card statement line by line until the ending balances match. Anything that does not match is a recording error or a real problem you need to know about. Want this handled for you? Monthly bookkeeping, cleanup and year-end close for small businesses. Start with a free health check of your books. [Free health check](/bookkeeping/health-check)[Get a quote](/bookkeeping/#interest) **Related:** [Void vs delete a transaction](/bookkeeping/guides/voiding-vs-deleting-transactions) · [NJ 1099 contractor rule (ABC test)](/bookkeeping/guides/nj-independent-contractor-rule-abc-test-2026) · [Trial balance explained](/bookkeeping/guides/trial-balance-explained) **Free tools:** [True cost of an employee](/bookkeeping/employee-cost-calculator) · [Contractor vs employee cost](/bookkeeping/contractor-vs-employee-cost-calculator) Prefer a file to work in? The [Month-End Close Workbook](/toolkits/month-end-close-workbook) runs the whole close in Excel and tells you when a reconciliation does not tie. [![Intuit ProAdvisor Gold tier badge](/img/credentials/intuit-proadvisor-gold.png)](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77)Gold tier in Intuit's ProAdvisor program. [See my Intuit listing](https://proadvisor.intuit.com/app/accountant/search?searchId=matthew-coleman77) Keeping your own books? Tallyfinch does invoices, bank import and reports on your computer. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) ## What reconciliation is You compare the transactions in your accounting software to the bank or card statement, line by line, until the ending balance in the software matches the statement. Anything that does not match is either a recording error or a real problem you need to know about. ## How to do it Open the reconcile screen for the account and enter the statement ending date and balance. Tick each transaction that appears on the statement. Add anything missing and fix anything wrong. When the difference reads zero, finish the reconciliation and save the report. ## Why it matters Reconciled books catch fraud, duplicate charges, missed deposits and bank errors. Lenders, tax preparers and buyers trust numbers that reconcile. ## When it will not balance Check for transactions entered twice, a transaction in the wrong account, a changed past entry, a missing deposit, and a typo in the statement balance. Look at the difference amount: if it equals one transaction, or half of one, you have found a likely cause. ## How often Every month, for every bank account and credit card. Reconcile payment processor accounts such as Square or Stripe too. ## Worked example with numbers Statement ending balance $9,640. Your books show $9,205. Outstanding checks total $620 and a deposit of $185 is in transit. $9,640 - $620 + $185 = $9,205, so you reconcile. If instead the books showed $9,250, the $45 difference could be a transposition, such as $54 entered as $45, or a missing bank fee. ## Mistakes that cost money Starting from the wrong opening balance. Marking items cleared that did not clear. Plugging the difference. Reconciling less often than monthly. ## Check your work The reconciliation report should show a zero difference and a short list of outstanding items, none older than a couple of months. ## Common questions **Do bank feeds make reconciliation unnecessary?** No. Feeds import transactions. Reconciliation confirms nothing is missing, doubled or wrong. **Can you do this for me?** Yes, it is the core of our monthly bookkeeping. This guide is general information, not tax, legal or accounting advice. Rules, fees and due dates change; check with the IRS, the NJ Division of Taxation or a licensed professional for your situation. Let us handle it [### Monthly bookkeeping Categorizing, reconciling and monthly reports, with cleanup, payroll and NJ filings available. Bookkeeping →](/bookkeeping/) [### QuickBooks Online Monthly bookkeeping, cleanup and reconciliation in QuickBooks Online for New Jersey small businesses. Your account stays in your name. QuickBooks →](/bookkeeping/software/quickbooks-online)[### Xero Bookkeeping and reconciliation in Xero for New Jersey small businesses, including cleanup and moving from spreadsheets or another program. Xero →](/bookkeeping/software/xero)[### Square, Stripe and payment processors How sales from Square, Stripe, PayPal and other processors should flow into your accounting software, and why deposits never match sales. Square & Stripe →](/bookkeeping/software/square-and-stripe) More guides - [New Jersey sales tax for small businesses](/bookkeeping/guides/nj-sales-tax-for-small-businesses) - [New Jersey payroll taxes and filings for small employers](/bookkeeping/guides/nj-payroll-taxes-and-filings-for-small-employers) - [1099 contractors: a checklist for New Jersey businesses](/bookkeeping/guides/1099-contractors-checklist-for-nj-businesses) - [NJ LLC Annual Report: Due Date, Cost & How to File Online](/bookkeeping/guides/new-jersey-llc-annual-report) Free tool - [Bookkeeping health check](/bookkeeping/health-check) Related - [Vendor statement reconciliation template (Excel)](/bookkeeping/templates/vendor-statement-reconciliation-template) - [Monthly close checklist (Excel)](/bookkeeping/templates/monthly-close-checklist) [All guides](/bookkeeping/guides) Reach small business owners, freelancers and bookkeepers who read this guide: [advertise here](/advertise#bookkeeping). Do it yourself ### Month-End Close Workbook A real month-end close in one Excel file. It tells you when a rec does not tie, which variances still need an answer, and when the period is ready to lock. [See what's inside ($19)](/toolkits/month-end-close-workbook)14-day full refund Course: [Small Business Bookkeeping Basics](/courses/small-business-bookkeeping-basics) ($49) covers chart of accounts, reconciliations, the monthly close, payroll and 1099 basics for owners. It is training with a certificate of completion, not a credential. [![Cover of Bookkeeping Fundamentals (ebook) by Matthew Colt](/img/toolkits/bookkeeping-fundamentals-ebook/cover.webp)](/toolkits/bookkeeping-fundamentals-ebook) From the bookshelf ### Bookkeeping Fundamentals A college-level bookkeeping course, without the tuition. By Matthew Colt, $9.99 as an ebook (EPUB and PDF). [See the book](/toolkits/bookkeeping-fundamentals-ebook) [Read the first pages free](/toolkits/bookkeeping-fundamentals-ebook#free-starter) Free tool ### Bank reconciliation difference finder Find the likely cause of a difference between your bank statement and your books. It runs in your browser and nothing you enter is saved. [Open the bank reconciliation difference finder](/bookkeeping/bank-reconciliation-difference-finder) Reviewed by a person ### Books Health Review Send us one period of reports from QuickBooks, Xero or Excel. A person reads them and emails a written list of what to fix, in order. [See what is included ($129)](/bookkeeping/books-health-review) Tallyfinch ### Books you keep on your own computer Tallyfinch does invoices, bills, bank import, reconciliation and the main reports, in a file you own. $99 once, then $5 a month for updates; the app keeps working if you stop the plan. It does not do payroll or sales tax filing. The free download records up to 60 entries. [See Tallyfinch](/bookkeeping/mcc-books-downloadable-bookkeeping-software) [Download it free](/tools/pro/trial/mccBooks) [Compare the three apps](/software) ## Rather have us keep the books? Ask for a quote. [Get a Quote](/bookkeeping/#interest)[Call (908) 444-6373](tel:+19084446373)