An Overview of Reconciliations

A reconciliation resolves completed and uncleared transactions on an individual account for a specific month. Reconciling an account matches your internal accounting against your bank statement, so you can confirm the two agree.

Key Terms

• Book Balance — the net amount in an account after all uncleared transactions have been subtracted from it.
• Uncleared Transaction — a transaction that doesn’t appear on a given month’s bank statement because it happened before or after that statement period, such as an unpaid outgoing invoice or a very recent purchase.

When a reconciliation is finished correctly, the difference between your statement balance and your book balance is $0.

Where to Manage Reconciliations

Reconciliations live under the Financials tab on the left Dashboard menu, on the Reconciliations sub-tab, alongside Budgets, Chart of Accounts, Transactions, Vendors, and Reports.