Bank reconciliation is a simple check: does the balance and movement in your accounting records agree with the bank statement? It is one of the most useful habits for business owners, even if you outsource bookkeeping.

A six-step monthly routine

  1. Download the complete bank statement for the month.
  2. Compare opening and closing balances with the ledger.
  3. Match customer collections to invoices and payment platform reports.
  4. Match supplier payments, payroll and expenses to supporting documents.
  5. Identify bank fees, interest, transfers, refunds and timing differences.
  6. Investigate unexplained items and keep a short follow-up list.

Watch out for marketplace deposits

Sales on Shopee or other platforms may not equal the net deposit received. Fees, refunds, vouchers and settlement timing can affect the amount collected. Use the platform statement, not just the bank deposit, to understand gross sales and deductions.

Common problems to avoid

  • Counting transfers between company bank accounts as sales.
  • Recording a director’s loan as customer revenue without checking.
  • Treating all money paid out as an expense.
  • Forgetting payments processed after month-end.
  • Losing supporting invoices once the bank transaction is matched.

What should you send your accountant?

Provide bank statements, sales/platform summaries, invoices, details of director transactions and a short list of anything that needs explanation. When documents are uploaded regularly, year-end work is usually smoother.

Related reading: monthly bookkeeping checklist and year-end accounts documents.

Need help keeping records up to date? Explore accounting services or contact us.