Stop wasting money! Our guide to bank reconciliation reveals how to find missing transactions, prevent fraud, and ensure your financial records match your bank statements. Reclaim your cash and gain financial control.

Bank Reconciliation: Stop Leaving Cash on the Table

Bank reconciliation is one of the most powerful, yet overlooked, controls small businesses can use to protect cash and prevent costly errors. This guide explains what bank reconciliation is, why it matters, how to do it efficiently, and how Giesler-Tran Bookkeeping (GTB) helps you stop leaving money on the table.

🎧 On the go? Listen on The Deep Dive — where we dig deeper into this topic: ‘Stop Leaving Cash on the Table: The Strategic Deep Dive into Bank and Credit Card Reconciliations‘. Listen or download.

What is bank reconciliation?

Bank reconciliation compares your internal accounting records to external bank and credit-card statements to ensure every transaction is captured once—and only once. Proper reconciliation finds missing deposits, duplicate charges, bank fees, and potential fraud.

Why bank reconciliation matters

Regular bank reconciliation protects your cash balance, improves forecast accuracy, reduces tax surprises, and provides an audit trail that saves time and money with your accountant. Businesses that reconcile monthly have fewer surprises and stronger cash control.

How to perform bank reconciliation (step-by-step)

1. Connect secure, read-only bank and credit-card feeds into your accounting software (QuickBooks Online or Xero).
2. Import and categorize all transactions, and attach source documents (receipts, invoices) to each transaction.
3. Run a bank statement import for the statement period you are reconciling.
4. Match transactions automatically using rules; handle exceptions manually.
5. Investigate and document any differences: timing issues, missing deposits, duplicates, or bank errors.
6. Post correcting entries (with memos) and attach supporting documentation.
7. Lock the accounting period after close and save PDF exports for the audit trail.

Frequency & best practices for bank reconciliation

Reconcile monthly at minimum. High-volume businesses should reconcile weekly. Use these best practices:

• Reconcile all cash-related accounts: checking, savings, merchant processors, and credit cards.
• Attach supporting receipts to each adjustment or memo.
• Use rules to automate recurring matches but review exceptions.
• Maintain a close checklist and lock the period to prevent post-close edits.
• Use least-privilege access and MFA for banking and accounting apps.

Common reconciliation issues and quick fixes

Missing Deposits: Check merchant processor settlements and verify deposit timing; record deposit adjustments with memos.

Duplicate Charges: Compare transaction details (amount, date, description) and void or reclassify duplicate entries.

Unrecorded Bank Fees: Set up regular monthly recurring expense entries for bank fees to avoid surprises.

Out-of-balance Statements: Run trial balance, inspect unapplied payments, and reclassify miscoded items.

Tools GTB uses to streamline reconciliation

We leverage QuickBooks Online, Xero, secure document portals, and bank-feed automation to reduce manual work and increase accuracy.

Key integrations and tools:

• QuickBooks Online (QBO)
• Xero
• Stripe / Square / PayPal integrations
• Bank feed automations
• Secure document portal (attach receipts)

Case study: How a proper reconciliation saved cash

A GTB client discovered a recurring merchant-processing fee miscode across three months during reconciliation. Correcting the entries recovered $2,400 of missed credits and prevented ongoing monthly leakage.

DIY bank reconciliation checklist (quick)

□ Download bank and credit card statements for the period.

□ Run the bank reconciliation tool in your accounting software.

□ Match & clear transactions one-by-one (or by rule where safe).

□ Investigate exceptions and document the reason.

□ Post adjusting entries with memos and attach supporting docs.

□ Export reconciled statements and lock the period.

Worksheet — Should you hire GTB?

Use this simple worksheet to decide if outsourcing reconciliation to GTB makes sense for your business.

Quick Scoring (0 = no, 1 = sometimes, 2 = yes). Add your points and total.

• I spend 5+ hours/week on reconciliations and bookkeeping tasks. — Score: _____
• My bank reconciliations are often late or incomplete. — Score: _____
• I have merchant processors or multiple deposit sources (Stripe, Square, PayPal). — Score: _____
• I frequently find unexpected bank or processing fees. — Score: _____
• Tax season causes last-minute cleanups and stress. — Score: _____

Scoring guide: 0–3 DIY ok; 4–7 consider hybrid GTB review; 8–10 strong fit for GTB full-service.

ROI mini-calculator

1. A. Your hourly value: $_____ B. Hours/week spent on books: _____
2. Owner time monthly cost = A × B × 4.33 = $_____
3. Compare that to GTB monthly flat-rate (e.g., $300–$600) to estimate savings.

Security & controls we enforce

• Read-only bank connections
• Multi-factor authentication on all financial apps
• Encrypted portals for documents
• Least-privilege access and approval workflows
• Period locks and PDF backups for audit trail

Next steps — get reconciliation right today

Ready to stop leaving cash on the table? Schedule a free reconciliation review and we’ll show quick wins we can implement immediately.

Click to schedule your free evaluation now.

Call: 971-200-5158

Giesler-Tran Bookkeeping • gieslertranbookkeeping.com • 971-200-5158