What is being compared?
The accounting ledger and the bank statement describe the same account from different perspectives. A payment may already be recorded in the books while it is still clearing through the bank. A fee or interest charge may appear on the statement before anyone enters it in the ledger.
A bank feed helps bring transactions into the software. Reconciliation checks the resulting account against a complete statement, including its opening and closing balances. It can expose gaps a transaction-by-transaction matching screen does not make obvious.
A difference that deserves an explanation
Imagine the books show $8,400 and the bank statement shows $8,700. An outstanding $300 supplier cheque could explain the difference. An unrecorded customer payment could also explain it, but would require a different correction. The amount alone does not establish which explanation is right.
Investigate old outstanding items and unexpected adjustments. An unexplained entry labelled reconciliation difference moves the uncertainty into the accounts instead of resolving it.
Make it part of the close
Reconcile business bank accounts, credit cards and payment-processor balances on an agreed schedule. Keep the statements and the reconciliation reports together. Ask your bookkeeper to identify unresolved items and who needs to supply the missing evidence.
If opening balances or old periods are unreliable, agree on a cleanup scope before relying on current reports. A recent month that appears balanced can still carry an incorrect opening position.
Sources & editorial notes
Sources checked October 23, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- Business recordsCanada Revenue Agency
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.