Reconcile a Bank Account

Reconcile a Bank Account

Bank reconciliation ensures your books match the bank's records. Compare your ledger balance against the bank statement balance and identify any discrepancies.

Overview

Bank reconciliation is the process of verifying that your client's books in Propio match the actual bank statement. By comparing the ledger balance against the bank statement ending balance, you can identify discrepancies such as missing transactions, duplicate entries, or timing differences. Regular reconciliation is a fundamental bookkeeping practice that ensures the accuracy and integrity of your client's financial records.

Steps

1. Navigate to Reconciliation

From your client's dashboard, click on Reconciliation in the left sidebar navigation. This opens the reconciliation section where you can manage bank account reconciliations.

2. Select a Bank Account

Choose the bank account you want to reconcile from the list of available accounts. If your client has multiple bank accounts, you'll need to reconcile each one separately. Select the account to begin a new reconciliation session.

3. Enter the Bank Statement Ending Balance and Date

Enter the ending balance from your client's bank statement and the statement date (the date through which the statement covers). This is the target balance that your Propio ledger should match after all transactions have been accounted for. You can find this information on the last page of the bank statement.

4. Review Matched Transactions

Propio displays the transactions for the reconciliation period. Review each transaction and mark it as cleared if it appears on the bank statement. As you mark transactions, the reconciliation summary updates to show the current difference between your ledger balance and the bank statement balance.

5. Identify Unmatched Items

Look for transactions that appear in Propio but not on the bank statement (outstanding items), or transactions on the bank statement that don't appear in Propio (missing transactions). Common unmatched items include:

• Outstanding checks that haven't cleared the bank yet
• Pending deposits in transit
• Bank fees or interest that haven't been recorded
• Transactions entered with incorrect amounts or dates

6. Resolve Discrepancies

For each unmatched item, determine the appropriate action. You may need to add missing transactions (such as bank fees), correct transaction amounts, or note items as outstanding that will clear in the next period. The goal is to bring the difference between the ledger balance and the statement balance to zero.

7. Complete the Reconciliation

Once the difference between the ledger balance and the bank statement balance is zero (or within an acceptable threshold), click Complete Reconciliation to finalize the session. Propio will record the reconciliation date and the reconciled balance for your records. A completed reconciliation serves as a checkpoint — transactions dated on or before the reconciliation date are locked from changes that would affect the reconciled balance.