Three jobs that are easy to confuse
A bank feed imports activity from a connected financial institution. It can help you see transactions to review, but a connection alone does not establish that every record is complete or correctly recorded.
Matching and categorization help record that activity. Matching connects a downloaded item with an existing entry, such as a payment you already recorded. Categorization assigns the appropriate account when recording a new transaction. Adding an item again when the payment already exists can create a duplicate.
Statement reconciliation checks a defined period. You compare the opening balance, activity and ending balance with the account statement, investigate differences and identify legitimate outstanding items. An empty feed review list is not proof that this step is complete.
A small fictional example
A fictional service business has recorded $1,000 of expenses in its expense ledger, including the same $120 supply payment posted twice in the same month. Its bank statement shows only one $120 payment. If review confirms that the second entry is a duplicate expense—and there are no other changes—removing that duplicate reduces recorded expenses to $880 and increases reported profit by $120.
A duplicate still waiting in the bank feed would not necessarily have affected the financial reports. That correction does not create $120 of cash. It fixes the records. An apparent duplicate first needs investigation: two transactions for the same amount may both be legitimate.
Differences deserve an explanation
- Missing activity: a feed may not cover every needed date. Compare coverage with the statements and supporting records.
- Duplicate entries: inspect whether a downloaded payment was added again instead of matched.
- Timing differences: a legitimate outstanding check can be in the books before it clears the bank. Document it and follow up rather than deleting it to make balances agree.
- Incorrect starting information: check the statement period and opening and closing balances before changing transactions.
Do not force a zero difference with an unsupported adjustment. A zero difference also does not establish the business purpose, tax treatment or correct classification of every transaction.
What a useful monthly review should tell you
Ask which accounts have been reconciled, through what date, which items remain unresolved, and what information is needed from you. Reports should identify material limitations rather than make uncertainty disappear.
Our fictional monthly-close summary illustrates a reconciled account alongside an expense-purpose question. It shows why reconciliation and classification are separate checks.
For recurring support, see monthly bookkeeping and agreed deliverables. If earlier periods need investigation, we discuss a separate catch-up or cleanup scope.
Start with a general description
Tell us which software you use, whether your books are current, and what you would like help with. Do not send statements or passwords through the public enquiry form. Permission and the sharing method come before a financial-record review.
Request a bookkeeping estimate
Further reading: Intuit’s statement reconciliation guidance. This article explains general bookkeeping concepts; it is not tax advice.