Include every account that carries activity
Operating accounts, cards, loans and payment processors can all hold business transactions. Transfers need both sides identified so money moving within the business is not counted as new revenue or expense. Closed accounts still matter for the periods under review.
Unpresented payments and unsettled receipts should retain dates and references. Material old items need investigation rather than being carried forward indefinitely.
Explain the composition of payments
A loan debit can contain principal and interest, and a processor deposit can be net of fees and refunds. We use the relevant statement to split the components rather than guessing from the bank description. Missing evidence is flagged for follow-up.
Illustrative example: two accounts show the same transfer
A Saskatoon freight business moves $7,000 between its operating and reserve accounts. Matching both records prevents the incoming transfer being recorded as freight income. The reconciliations then show the actual total cash without duplicating the movement.
Outstanding items are reviewed for age and cause. A deposit still in transit, an unpresented payment and an import duplicate require different follow-up, even if each appears as a difference in the reconciliation. We retain the explanation and supporting reference so another reviewer can follow the balance from one month into the next.
Questions about this work
Can you reconcile a processor account?
Yes, with complete settlement and activity reports. The expected payout must be connected to the bank and remaining processor balance.
Will you clear every difference with a journal?
Only supported adjustments are appropriate. Unexplained differences remain visible until the evidence or accountant review resolves them.
Put this into practice
Sources and current guidance
A practical next step
Bring the records you have.
We can identify missing information, agree on the scope and organize the next bookkeeping step.
Request a bookkeeping review