What is Bank Reconciliation?
Proving your books agree with the bank - the control that catches errors, fraud, and missed entries.
Bank Reconciliation: definition
Your ledger and your bank should tell the same story. Reconciliation compares them line by line, catching timing differences (checks not yet cleared), missing entries, duplicate charges, bank fees, and - importantly - errors or fraud. It is a foundational internal control and a required step in any credible close.
- Match each ledger transaction to a bank transaction
- Identify timing differences like outstanding checks or deposits in transit
- Record items the bank shows but the ledger missed (fees, interest)
- Investigate anything that does not match before locking the period
How Fintra handles it
Fintra connects to your bank feeds and auto-matches transactions to ledger entries, so reconciliation is continuous rather than a month-end marathon. The AI proposes matches and categorizations and flags unmatched or suspicious items; a person confirms exceptions. Because matching happens daily, the account is effectively reconciled by the time the period ends.
Worked example
Frequently asked questions
Why is bank reconciliation important?
It confirms your books match reality, catches errors and fraud, and is a prerequisite for a trustworthy close and a clean audit. Skipping it lets mistakes compound silently until the numbers no longer mean anything.
How often should you reconcile?
At minimum monthly, as part of close. Best practice - and what Fintra enables - is continuous reconciliation via bank feeds, so discrepancies are caught within days rather than at month-end.
What causes reconciliation differences?
Timing (outstanding checks, deposits in transit), bank items not yet in the ledger (fees, interest), data-entry errors, duplicates, or fraud. Reconciliation exists to find and explain each difference before the books are finalized.
Does Fintra automate reconciliation?
Yes. Fintra connects bank feeds, auto-matches and categorizes transactions with AI, and flags exceptions for human confirmation - turning reconciliation into a continuous background process instead of a month-end task.
Stay in the loop
One practical finance briefing a week - new guides, checklists, and benchmarks.
See how Fintra handles the numbers behind this term
Fintra is the AI Finance Operating System for SMBs - accounting, planning, payroll, equity, and AI governance on one shared data model, with a named human approving anything consequential. Free to start, no card required.
Talk to us