How to reconcile your records with a bank statement

Reconciling sounds like accountancy, but the idea is simple: your record and the bank's should agree. When they do not, something is missing.

1. Pick a period

A month is easiest. Take the statement for that month and your own list for the same dates.

2. Match line by line

Tick off each entry that appears in both. Most will match quickly.

3. Investigate the leftovers

Entries only in the bank statement are things you did not record. Entries only in yours may be pending or mistaken.

4. Compare the totals

Starting balance plus credits minus debits should equal the ending balance. A difference means a missing or wrong entry.

5. Fix and note the cause

Correct the record, and if there is a pattern, such as always forgetting a type of payment, change your routine.