Your Bank Feed Is Connected. Your Books Still Need Reconciliation.
By Leyda Lazo, SHRM-SCP | Human Capital Consultants International (HCCI)
HCCI Insights · November 13, 2026 · Accounting & Bookkeeping
Connecting your bank feed imports transaction information; it does not prove that the accounting records are complete or correct. Reconcile each bank account to its statement and investigate differences before relying on the cash balance.
What the numbers need to tell you
Reconciliation compares the ledger with an independent account statement for the same date. Timing differences, omitted charges, duplicate entries, and transactions posted to the wrong account require different responses. The objective is an explained balance, not a zero difference created by an unsupported adjustment.
Three practical steps
Obtain the statement directly from the financial institution and confirm the opening balance. Compare deposits and withdrawals with the ledger, identifying transactions already recorded through another workflow.
List outstanding items with dates and explanations. Investigate old checks and deposits in transit rather than carrying them forward indefinitely. Confirm legitimate timing differences through subsequent activity.
Record supported corrections and have someone review unresolved items. Retain the reconciliation, statement, and evidence behind adjustments with the monthly close records.
A closer look at the decision
Start with one account and follow a small number of transactions from the original document through the ledger to the bank statement. This reveals whether the team understands the matching process or is simply accepting imported entries. Pay particular attention to the beginning balance after a software migration and to transactions recorded manually before a feed was connected. A recurring unexplained difference is a reason to review the workflow. It is not a reason to add a recurring adjustment. Keep the evidence close enough to the reconciliation that a reviewer can follow it without asking the preparer to reconstruct the month.
A hypothetical example
Imagine a $2,400 supplier payment entered from the bill-payment process and imported again as a new expense. The bank feed works correctly, but the books contain a duplicate. Reconciliation prompts the accountant to match the payment to the existing record instead of using an unexplained balancing entry.
Make the correction traceable
A useful accounting correction explains the original transaction, the evidence reviewed, and the reason for the new treatment. Keep the supporting document with the entry and identify who reviewed it. If the change affects a report already shared with management or an adviser, explain that effect. A corrected number without a clear history leaves the next reviewer facing the same uncertainty.
Check the affected account after the correction and look for the same pattern elsewhere. An isolated mistake may need a single adjustment. A repeated issue may require a change to an import rule, supplier setup, document intake, or review step. Address the source of the problem before automating more transactions. Otherwise, the software can make an inconsistent process faster without making the records more dependable.
A question owners ask
Should the owner approve every bookkeeping entry?
Usually the more practical approach is to agree which exceptions and decisions need owner involvement, while a capable preparer and reviewer handle routine work within an explicit scope. The owner should still understand significant unresolved balances, unusual transactions, and changes affecting decisions. Approval should be based on evidence, not on a blanket request to confirm that the books look fine.
The point to keep in view
Never force the account to reconcile by assigning an unexplained difference to miscellaneous expense.
Your next step
Take one unresolved item from question to supported conclusion this week. Preserve the evidence, confirm the accounting treatment with the appropriate adviser, and check the resulting report. Then decide whether the process needs a change that will prevent the same question from returning next month.
Keep this review proportionate to the amount and the decision involved. Start with the most significant uncertainty, resolve it with the appropriate records and adviser, and document the conclusion. A focused review that produces an explained number and a clear next action is more useful than collecting additional reports without resolving the original question.
Have a question about organizing your company’s accounting function? Contact HCCI to discuss the support you need and the scope of an appropriate engagement.
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