Problem-Solution GuideJanuary 21, 2025

Monthly Bank Reconciliation Checklist

A systematic checklist for monthly bank reconciliation. Includes time estimates for manual vs automated approaches, common pitfalls to avoid, and a printable checklist you can use for every client.

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The Reconciliation Challenge

Bank reconciliation is straightforward in theory but time-consuming in practice. The challenge isn't the concept—it's the volume of transactions and the tedium of matching each one.

Time Reality Check

Small client (50 transactions)

Manual: 45-60 min

Automated: 10-15 min

Medium client (200 transactions)

Manual: 2-3 hours

Automated: 30-45 min

Large client (500+ transactions)

Manual: 4-6 hours

Automated: 1-2 hours

The checklist below helps you work systematically, reducing errors and ensuring nothing is missed. Automation tools like Zera Books can handle the matching automatically, but the process steps remain the same.

Pre-Reconciliation Checklist

Complete these items before starting the reconciliation process.

Download or obtain bank statements for all accounts

Verify statement period matches reconciliation period

Confirm opening balance matches prior month ending balance

Gather any pending items from prior reconciliation

Have access to accounting software (QuickBooks, Xero, etc.)

6-Step Reconciliation Process

Follow these steps in order for each account. Time estimates compare manual vs automated approaches.

Compare Opening Balances

Manual: 5-10 minAuto: < 1 min

Match bank statement opening balance to GL beginning balance

If they differ, investigate prior period adjustments

Document any opening balance discrepancies

Match Cleared Transactions

Manual: 60-90 minAuto: 5-10 min

Mark deposits that appear on both bank and GL

Mark withdrawals that appear on both bank and GL

Flag any amount discrepancies for investigation

Identify Outstanding Items

Manual: 20-30 minAuto: 2-5 min

List deposits in transit (recorded in GL but not bank)

List outstanding checks (recorded in GL but not cleared)

Verify outstanding items from prior month have cleared

Record Bank Adjustments

Manual: 15-20 minAuto: 5-10 min

Enter bank fees not yet recorded in GL

Enter interest earned not yet recorded

Record any automatic payments missed

Enter bank corrections or adjustments

Investigate Discrepancies

Manual: 30-60 minAuto: 10-15 min

Research unmatched transactions

Check for duplicate entries

Verify transaction dates

Look for transposition errors

Finalize & Document

Manual: 10-15 minAuto: 2-5 min

Verify ending balance matches bank statement

Print/save reconciliation report

Note any items requiring follow-up

Archive bank statement with reconciliation

Total Time Comparison

For a typical 200-transaction account

Manual: 2.5-4 hours

Automated: 30-50 minutes

Common Pitfalls to Avoid

Timing differences

Transactions recorded in different periods

Use consistent cutoff dates and check timing of large transactions

Duplicate entries

Same transaction recorded twice

Run duplicate detection reports before reconciliation

Bank fee surprises

Fees not recorded until reconciliation

Set up recurring entries for predictable fees

Uncleared items aging

Outstanding checks that never clear

Review items over 90 days and void stale checks

Real-World Results

"We were drowning in bank statements from two provinces and multiple revenue streams. Zera Books cut our month-end reconciliation from three days to about four hours."

Manroop Gill

Co-Founder at Zoom Books

Before vs After

Before

3 days per month

After

4 hours per month

Automation Strategies

The biggest time savings come from automating the transaction matching step. Here's how different tools approach it:

Manual Matching

Compare each transaction one by one
Manually check off matched items
Time scales linearly with volume

Automated MatchingRecommended

AI matches transactions automatically
Fuzzy matching handles timing differences
Only review exceptions (typically 3-5%)

See our complete automation guide for implementation details.

Automate Your Reconciliation Workflow

Zera Books automates statement extraction and transaction matching, reducing reconciliation time by 80% or more.

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