{"id":7205,"date":"2026-08-14T09:51:15","date_gmt":"2026-08-14T13:51:15","guid":{"rendered":"https:\/\/www.sage.com\/en-ca\/blog\/?p=7205"},"modified":"2026-08-17T09:56:46","modified_gmt":"2026-08-17T13:56:46","slug":"how-to-do-a-bank-reconciliation","status":"publish","type":"post","link":"https:\/\/www.sage.com\/en-ca\/blog\/how-to-do-a-bank-reconciliation\/","title":{"rendered":"How to do a bank reconciliation"},"content":{"rendered":"<header class=\"entry-header has-dark-background-color entry-header--standard entry-header--has-illustration entry-header--has-illustration--standard\">\n\t<div class=\"container\">\n\t\t<div class=\"entry-header__row row align-center\">\n\t\t\t<div class=\"col col-lg-7 col-xlg-6 entry-header__content\">\n\t\t\t\t\t\t\t<div class=\"component component-single-header\">\n\t\t\t\t\t\t\t\t\t\t<div class=\"entry-header__misc text--subtitle text--uppercase text--small\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/category\/money-matters\/\" class=\"entry-header__link\">Money Matters<\/a>\t\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t<div class=\"entry-title-wrapper\">\n\t\t\t\t\t<h1 class=\"entry-title\">\n\t\t\t\t\t\tHow to do a bank reconciliation\t\t\t\t\t<\/h1>\n\t\t\t\t<\/div>\n\n\t\t\t\t\t\t\t\t\t<p class=\"entry-header__description\">\n\t\t\t\t\t\tOne of the best sources for verifying your company\u2019s transaction history is your bank account. But how can you check that this information is correctly reflected in your internal records? Bank reconciliation is the answer. \t\t\t\t\t<\/p>\n\t\t\t\t\n\t\t\t\t\n\t\t\t\t\n\t\t\t<\/div>\n\n\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n\t\t<div class=\"single-post-details container\">\n\t\t<div class=\"col\">\n\t\t\t<span class=\"posted-on \">Published <time class=\"entry-date published\" datetime=\"2026-08-14T09:51:15-04:00\">August 14, 2026<\/time><\/span><span class=\"reading-time\"> min read<\/span>\n\t\t<button\n\t\t\ttype=\"button\"\n\t\t\tclass=\"social-share-button button button--icon button--secondary js-social-share-button\"\n\t\t\tdata-share-title=\"How to do a bank reconciliation\"\n\t\t\tdata-share-url=\"https:\/\/www.sage.com\/en-ca\/blog\/how-to-do-a-bank-reconciliation\/\"\n\t\t\tdata-share-text=\"Please read this interesting article\"\n\t\t>\n\t\t\t<span class=\"social-share-button__share-label\">Share<\/span>\n\t\t\t<span class=\"social-share-button__copy-label\" hidden>Copy Link<\/span>\n\t\t\t<span class=\"social-share-button__copy-tooltip\" aria-hidden=\"true\" hidden>Copied<\/span>\n\t\t<\/button>\n\n\t\t\t\t<\/div>\n\t<\/div>\n\t<\/header>\n\n\n\n<div class=\"wp-block-post-author has-dark-background-color alignfull\">\n\t<div class=\"container\">\n\t\t<div class=\"col\">\n\t\t\t\t\t\t\t<div class=\"co-authors\">\n\t\t\t\t\t\n\t\t<div class=\"entry-author-wrapper\">\n\t\t\t<a class=\"entry-author\" href=\"https:\/\/www.sage.com\/en-ca\/blog\/author\/joechurchwoods\/\">\n\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"40\" height=\"40\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2026\/05\/Joe-Yard-2-crop-350x350.jpg\" class=\"entry-author__image\" alt=\"Joe Church Woods\" \/>\t\t\t\t<span class=\"entry-author__name\">Joe Church Woods<\/span>\n\t\t\t<\/a>\n\n\t\t\t\t\t<\/div>\n\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t<\/div>\n<\/div>\n\n\n\n<section class=\"wp-block-sage-article-update\"><div class=\"sage-article-update__inner\"><p>This article was originally published on July 17, 2021, but has been completely rewritten with fresh content in August 2026. <\/p><\/div><\/section>\n\n\n\n<p class=\"wp-block-paragraph\">Your bank account records all transactions with suppliers, customers, and financing partners, serving as the primary source of truth.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">At the same time, your accounting system tracks these same movements as the basis for financial statements and&nbsp;<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/cash-flow-management-tips-businesses-2\/\" target=\"_blank\" rel=\"noreferrer noopener\">cash flow management<\/a>&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, due to external schedules and potential errors, your records and the bank&#8217;s may differ.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Bank reconciliation&nbsp;is how you make sure both sets of information align.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While some companies still perform this manually, many use&nbsp;integrated accounting software&nbsp;to automate much of the process.<\/p>\n\n\n<section id=\"key-takeaways\" class=\"wp-block-sage-key-takeaways\"><div class=\"sage-key-takeaways__inner\"><h2 class=\"wp-block-heading has-h-3-font-size\">Key takeaways<\/h2>\n<ul class=\"wp-block-list\">\n<li>Bank reconciliation&nbsp;compares your internal financial records against your bank statement to ensure accuracy, detect fraud, and correct errors before they cause bigger problems.&nbsp;<\/li>\n\n\n\n<li>How often you reconcile&nbsp;depends on your transaction volume. Monthly works for smaller businesses, while weekly or daily suits higher-volume operations better.&nbsp;<\/li>\n\n\n\n<li>Five key steps&nbsp;guide the process: match transactions,&nbsp;identify&nbsp;discrepancies, update your records, document all changes, and confirm the final balances align.&nbsp;<\/li>\n\n\n\n<li>Reconciliation software&nbsp;saves&nbsp;significant time, reduces errors, and integrates with your accounting system, making it well worth the investment for growing businesses.&nbsp;<\/li>\n<\/ul>\n<\/div><\/section>\n\n\n<h3 id=\"h-here-s-what-we-ll-cover\" class=\"wp-block-heading\">Here&#8217;s what we&#8217;ll cover:<\/h3>\n\n\n<?xml encoding=\"utf-8\" ?><div class=\"wp-block-yoast-seo-table-of-contents yoast-table-of-contents\"><ul><li><a href=\"#h-what-is-a-bank-reconciliation\" data-level=\"2\">What is a bank reconciliation?<\/a><\/li><li><a href=\"#h-what-is-the-purpose-of-a-bank-reconciliation\" data-level=\"2\">What is the purpose of a bank reconciliation?<\/a><\/li><li><a href=\"#h-types-of-bank-reconciliation\" data-level=\"2\">Types of bank reconciliation<\/a><\/li><li><a href=\"#h-what-is-a-bank-reconciliation-statement\" data-level=\"2\">What is a bank reconciliation statement ?<\/a><\/li><li><a href=\"#h-how-often-should-you-do-bank-reconciliations\" data-level=\"2\">How often should you do bank reconciliations?<\/a><\/li><li><a href=\"#h-how-to-do-a-bank-reconciliation-in-5-steps\" data-level=\"2\">How to do a bank reconciliation in 5 steps<\/a><\/li><li><a href=\"#h-bank-reconciliation-template\" data-level=\"2\">Bank reconciliation template<\/a><\/li><li><a href=\"#h-bank-reconciliation-example\" data-level=\"2\">Bank reconciliation example<\/a><\/li><li><a href=\"#h-software-for-bank-reconciliation\" data-level=\"2\">Software for bank reconciliation<\/a><\/li><li><a href=\"#h-final-thoughts\" data-level=\"2\">Final thoughts<\/a><\/li><li><a href=\"#h-bank-reconciliation-faqs\" data-level=\"2\">Bank reconciliation FAQs<\/a><\/li><\/ul><\/div>\n\n\n\n<h2 id=\"h-what-is-a-bank-reconciliation\" class=\"wp-block-heading\">What is a bank reconciliation?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Bank reconciliation is the process of comparing each bank statement with your own financial records,&nbsp;to&nbsp;identify&nbsp;and reconcile any differences in reporting between the bank and your own books.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Typically, adjustments&nbsp;are then&nbsp;made and noted on&nbsp;your&nbsp;company&#8217;s end to account for the differences in the records, like bank service charges or fees that the company&nbsp;hasn&#8217;t&nbsp;yet recorded.<\/p>\n\n\n\n<h2 id=\"h-what-is-the-purpose-of-a-bank-reconciliation\" class=\"wp-block-heading\"><strong>What is the purpose of a bank reconciliation?<\/strong><\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The&nbsp;main&nbsp;purposes&nbsp;of a bank reconciliation&nbsp;are&nbsp;to ensure&nbsp;accurate&nbsp;financial reporting&nbsp;and help prevent fraud.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By&nbsp;identifying&nbsp;and resolving discrepancies, the corrected cash balance provides a reliable figure that reflects your company&#8217;s true cash position in its financial statements.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Regular reconciliation&nbsp;also&nbsp;acts as a key control in preventing fraud. By carefully comparing records you can spot unusual or suspicious&nbsp;transactions&nbsp;and&nbsp;take action to safeguard&nbsp;your cash assets.<\/p>\n\n\n\n<h2 id=\"h-types-of-bank-reconciliation\" class=\"wp-block-heading\">Types of bank reconciliation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Your approach to bank reconciliation depends on the volume of your transactions and the complexity of your cash management needs. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This means you need to be aware of the different methods. Here are the main types:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Periodic reconciliation<\/strong>: this is the most common type. It involves reconciling bank statements at regular intervals, typically monthly, after receiving each bank statement. For example, a small business might receive its bank statement at the end of April and then perform a reconciliation in early May, comparing it to their cash records for April.&nbsp;<\/li>\n\n\n\n<li><strong>Continuous reconciliation:<\/strong> this method involves reconciling transactions more&nbsp;frequently, such as daily or weekly. This allows for quicker identification of discrepancies. For instance, a larger company with high transaction volumes might reconcile its cash account every Friday, comparing its records to the bank&#8217;s online transaction history up to that point.&nbsp;<\/li>\n\n\n\n<li><strong>Inter-company reconciliation: <\/strong>this is necessary when a company has multiple bank accounts, often across different entities or subsidiaries. It involves reconciling transactions between these different accounts. For example, if a parent company transfers funds to a subsidiary&#8217;s bank account, both accounts need to reflect this transaction, and an inter-company reconciliation ensures they match.&nbsp;<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/what-is-accounts-receivable\/\" target=\"_blank\" rel=\"noreferrer noopener\">Accounts receivable<\/a>&nbsp;reconciliation:<\/strong> the cash receipts recorded in your accounting system&nbsp;don&#8217;t&nbsp;always match the deposits shown on the bank statement. Any discrepancies, like a customer payment recorded internally but not yet showing on the bank statement (deposit in transit), would need to be investigated.&nbsp;<\/li>\n\n\n\n<li><strong><a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/what-is-accounts-payable\/\" target=\"_blank\" rel=\"noreferrer noopener\">Accounts payable<\/a>&nbsp;reconciliation:<\/strong> all payments made to suppliers and other creditors should also show up as cleared in your bank account. So here&nbsp;you&#8217;ll&nbsp;compare your list of issued cheques and electronic payments with the debits in your bank statement. Differences might arise from outstanding cheques that have been issued but not yet cashed by the recipient.<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-what-is-a-bank-reconciliation-statement\" class=\"wp-block-heading\"><strong>What is a bank reconciliation statement<\/strong>?<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">A bank reconciliation statement is a record of each reconciliation you perform, whether that be monthly, weekly, or daily. It lists the items that caused any differences between the bank statement and your internal records and how the differences have been corrected.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">In short, it shows that both cash balances are now in agreement.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The statement is primarily for internal use by the company&#8217;s accounting team and management to ensure accuracy and detect any issues. It may also be reviewed by auditors to ensure compliance and financial accuracy.<\/p>\n\n\n\n<h2 id=\"h-how-often-should-you-do-bank-reconciliations-nbsp\" class=\"wp-block-heading\">How often should you do bank reconciliations?&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Your decision on how often to perform bank reconciliations depends on your business&#8217;s specific needs and transaction volume.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">For businesses with simpler accounting and fewer transactions, reconciling monthly\u2014after receiving each bank statement\u2014may suffice.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">However, as your business grows,&nbsp;possibly generating&nbsp;a higher volume of transactions, you may find it advisable to conduct them weekly or even daily.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">More frequent reconciliation improves cash flow management, helps you&nbsp;identify&nbsp;discrepancies promptly, and allows ample time to correct errors before they lead to accounting complications.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whatever the case,&nbsp;it&#8217;s&nbsp;important for the frequency to be consistent. Here are some reasons why regular bank reconciliation is beneficial:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Improved cash flow management: <\/strong>by&nbsp;identifying&nbsp;discrepancies and ensuring&nbsp;accurate&nbsp;cash balances, businesses gain a clearer understanding of their available funds. This allows for better planning of expenditures,&nbsp;timely&nbsp;payments, and informed decisions about investments.&nbsp;<\/li>\n\n\n\n<li><strong>Early detection of fraudulent activities:<\/strong> routine comparisons between internal records and bank statements can uncover suspicious activities like forged cheques or false electronic transfers before they lead to significant losses.&nbsp;<\/li>\n\n\n\n<li><strong>Enhanced error correction: <\/strong>reconciliations also catch unintentional mistakes made by either the bank or your company. Correcting these promptly ensures the reliability of your financial data and strengthens your relationship with the bank.&nbsp;<\/li>\n<\/ul>\n\n\n\n<h2 id=\"h-how-to-do-a-bank-reconciliation-in-5-steps\" class=\"wp-block-heading\">How to do a bank reconciliation in 5 steps<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">To get the most out of this process, it helps to follow a structured approach. There are five basic steps to follow when you prepare a bank reconciliation:<\/p>\n\n\n\n<h3 id=\"h-1-match-transactions-between-internal-records-and-bank-statements-nbsp\" class=\"wp-block-heading\">1: Match transactions between internal records and bank statements&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Begin by comparing the transactions recorded in your company&#8217;s cash ledger with those listed on the bank statement. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Focus first on matching transaction amounts rather than descriptions, which can sometimes vary in wording. Ensure that all deposits, withdrawals, and other credits or debits are accounted for in both records.<\/p>\n\n\n\n<h3 id=\"h-2-identify-and-note-discrepancies\" class=\"wp-block-heading\">2: Identify and note discrepancies<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">As you go through the comparison, highlight any mismatches or missing items. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Common discrepancies include outstanding cheques (issued but not yet cleared), deposits in transit (received but not yet recorded by the bank), unrecorded bank fees, and potential errors on either side.<\/p>\n\n\n\n<h3 id=\"h-3-update-your-records\" class=\"wp-block-heading\">3: Update your records<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Adjust your internal ledger to reflect any bank-side items not yet recorded, such as interest income or service charges. Also, correct any errors you find in your books. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This step ensures your internal records reflect the actual cash position.<\/p>\n\n\n\n<h3 id=\"h-4-keep-a-record-of-all-changes-made\" class=\"wp-block-heading\">4: Keep a record of all changes made<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Register the date of the adjustment, the amount, the specific account affected, and a clear explanation of why the adjustment was necessary. You may also need to reference supporting documentation.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Your accounting system should include space for explanatory journal entries to document these adjustments. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The bank reconciliation statement itself serves as a record of the adjustments made and can be referenced during audits.<\/p>\n\n\n\n<h3 id=\"h-5-reconcile-the-final-balances\" class=\"wp-block-heading\">5: Reconcile the final balances<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">After making all necessary adjustments, check that the revised balance in your company&#8217;s records matches the adjusted balance on the bank statement (which should account for timing differences like outstanding cheques). If the balances align, your reconciliation is complete.<\/p>\n\n\n\n<h2 id=\"h-bank-reconciliation-template-nbsp\" class=\"wp-block-heading\">Bank reconciliation template&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">For consistency, always use a standardized format for organizing your bank reconciliation process.&nbsp;It&#8217;s&nbsp;recommended to use a preconfigured template. This helps ensure all necessary steps are followed and that all reconciling items are properly documented.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The template should look like this:&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Bank statement<\/th><\/tr><\/thead><tbody><tr><td><strong>Date:<\/strong>&nbsp;<\/td><td><strong>Transaction:<\/strong>&nbsp;<\/td><td><strong>Movement:<\/strong>&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Sale 1&nbsp;<\/td><td>$+&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Investment dividend&nbsp;<\/td><td>$+&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Supplier payment 1&nbsp;<\/td><td>$+&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Bills&nbsp;<\/td><td>$-&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Fees&nbsp;<\/td><td>$-&nbsp;<\/td><\/tr><tr><td>End date:&nbsp;<\/td><td><strong>Closing balance:<\/strong>&nbsp;<\/td><td><strong>$ xxxx<\/strong>&nbsp;<\/td><\/tr><tr><td colspan=\"3\">&nbsp;<\/td><\/tr><tr><td colspan=\"3\"><strong>Internal records<\/strong>&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Sale 1&nbsp;<\/td><td>$+&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Sale 2&nbsp;<\/td><td>$+&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Investment dividend&nbsp;<\/td><td>$+&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Supplier payment 1&nbsp;<\/td><td>$+&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Supplier payment 2&nbsp;<\/td><td>$+&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Bills&nbsp;<\/td><td>$-&nbsp;<\/td><\/tr><tr><td>End date:&nbsp;<\/td><td><strong>Closing balance:<\/strong>&nbsp;<\/td><td><strong>$ xxxx<\/strong>&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td colspan=\"3\"><strong>Adjustments<\/strong>&nbsp;<\/td><\/tr><tr><td colspan=\"2\">Sale 2: check outstanding\u2013add to bank account&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td colspan=\"2\">Supplier payment 2: deposit in transit\u2013add to bank account&nbsp;<\/td><td><strong>New bank balance<\/strong>: $$&nbsp;<\/td><\/tr><tr><td colspan=\"3\">&nbsp;<\/td><\/tr><tr><td colspan=\"2\">Bank fees\u2013subtract from internal books&nbsp;<\/td><td><strong>New internal balance<\/strong>: $$&nbsp;<\/td><\/tr><\/tbody><tfoot><tr><td><\/td><td><\/td><td><\/td><\/tr><\/tfoot><\/table><\/figure>\n\n\n\n<h2 id=\"h-bank-reconciliation-example\" class=\"wp-block-heading\">Bank reconciliation example<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" id=\"h-taking-three-classic-types-of-discrepancies-that-can-arise-between-the-bank-s-information-and-your-records-let-s-build-a-simple-case-study-to-show-how-the-registries-can-be-corrected\">Taking three classic types of discrepancies that can arise between the bank&#8217;s information and your records,&nbsp;let&#8217;s&nbsp;build a simple case study to show how the registries can be corrected.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Now, look at outstanding cheques, deposits in transit and bank service charges.<\/p>\n\n\n\n<h3 id=\"h-example-of-a-typical-bank-reconciliation-statement-nbsp\" class=\"wp-block-heading\"><strong>Example of a typical bank reconciliation statement<\/strong>&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Initial bank statement = $6,450&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Initial company books = $5,000&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Adjustments to be noted:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>$2,000 in outstanding cheques to suppliers&nbsp;<\/li>\n\n\n\n<li>$500 in deposits in transit from sales&nbsp;<\/li>\n\n\n\n<li>$50 in bank service charges&nbsp;<\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\">First, factor in the information missing from the bank statement and adjust it. That means the outstanding cheques and deposits in transit:&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">$6,450 \u2013 $2,000 + $500 = $4,950&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Then adjust your books to reflect the service charges from the bank that you&nbsp;didn&#8217;t&nbsp;know about until you got the statement:&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">$5,000 \u2013 $50 = $4,950&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Adjusted bank statement = $4,950&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Adjusted company books = $4,950&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The two balances are now the same and therefore are reconciled.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Using the&nbsp;template&nbsp;it looks like this:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Bank statement<\/th><\/tr><\/thead><tbody><tr><td><strong>Date:<\/strong>&nbsp;<\/td><td><strong>Transaction:<\/strong>&nbsp;<\/td><td><strong>Movement:<\/strong>&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Initial balance&nbsp;<\/td><td>$6,450&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Adjustment: outstanding checks&nbsp;<\/td><td>($2,000)&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Adjustment: deposit in transit&nbsp;<\/td><td>$500&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td>End date:&nbsp;<\/td><td><strong>Closing balance:<\/strong>&nbsp;<\/td><td><strong>$4,950<\/strong>&nbsp;<\/td><\/tr><tr><td colspan=\"3\">&nbsp;<\/td><\/tr><tr><td colspan=\"3\"><strong>Internal records<\/strong>&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Initial balance&nbsp;<\/td><td>$5,000&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>Adjustment: bank fees&nbsp;<\/td><td>($50)&nbsp;<\/td><\/tr><tr><td>&nbsp;<\/td><td>&nbsp;<\/td><td>&nbsp;<\/td><\/tr><tr><td>End date:&nbsp;<\/td><td><strong>Closing balance:<\/strong>&nbsp;<\/td><td><strong>$4,950<\/strong>&nbsp;<\/td><\/tr><\/tbody><tfoot><tr><td><\/td><td><\/td><td><\/td><\/tr><\/tfoot><\/table><\/figure>\n\n\n\n<h3 id=\"h-bank-reconciliation-as-a-learning-opportunity-nbsp\" class=\"wp-block-heading\">Bank reconciliation as a learning opportunity&nbsp;<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\">Every reconciliation is a chance to spot patterns and learn. You might notice recurring errors\u2014like duplicated transactions, missing entries, or timing differences.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">These clues help you tighten your processes and catch issues earlier next time. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Over time, reconciliation helps you prevent future discrepancies by making your bookkeeping more&nbsp;accurate&nbsp;and your internal checks more effective.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">This&nbsp;doesn&#8217;t&nbsp;just fix mistakes\u2014it&#8217;s&nbsp;shows you why they happen and helps you to stops them before they start. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">It also helps you weed out any mistakes before they cause issues further down the line in the&nbsp;<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/glossary\/what-is-a-general-ledger\/\" target=\"_blank\" rel=\"noreferrer noopener\">general ledger<\/a>&nbsp;reconciliation.<\/p>\n\n\n\n<h2 id=\"h-software-for-bank-reconciliation\" class=\"wp-block-heading\">Software for bank reconciliation<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">While manual bank reconciliation offers control and can be cheaper for&nbsp;very small&nbsp;businesses, it means you&nbsp;have to&nbsp;compare transactions line by line.&nbsp;It&#8217;s&nbsp;a time-consuming and tedious process that is prone to errors.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Automated bank reconciliation, for example, like software from Sage, saves time and enhances accuracy, while also integrating with your accounting systems. It provides real-time visibility and helps detect or prevent fraud.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While purpose-built&nbsp;<a href=\"https:\/\/www.sage.com\/en-ca\/integrated-payment-solutions\/bank-reconciliation-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">bank reconciliation software<\/a>&nbsp;comes at a cost, it pays for itself through the added efficiency it enables, particularly if your business manages high transaction volumes, or multiple accounts and currencies.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">There&#8217;s&nbsp;fewer mistakes and less re-work needed, and automation can save you much more time.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-final-thoughts\" class=\"wp-block-heading\">Final thoughts<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Bank reconciliation is a fundamental control for any business that manages&nbsp;cash, but&nbsp;has to&nbsp;be done consistently to safeguard against errors and ensure accuracy.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">While the process can present complexities,&nbsp;establishing&nbsp;a regular schedule and meticulous attention to detail are key.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Investing in the right&nbsp;<a href=\"https:\/\/www.sage.com\/en-ca\/accounting-software\/\" target=\"_blank\" rel=\"noreferrer noopener\">accounting solution<\/a>&nbsp;can make your reconciliations faster, more&nbsp;accurate, and less labour-intensive\u2014while still delivering the key benefits of reliable financial reporting and early fraud detection.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">By understanding the&nbsp;different types&nbsp;of reconciliation and following a structured approach, you can take control of cash flow and keep your business on an even keel.<\/p>\n\n\n<section class=\"wp-block-sage-faq\">\n\t\n<h2 id=\"h-bank-reconciliation-faqs-nbsp\" class=\"wp-block-heading\"><strong>Bank reconciliation FAQs&nbsp;<\/strong><\/h2>\n\t\t\t<div class=\"faq-items\">\n\t\t\t<div class=\"wp-block-sage-faq-item\" id=\"faq-item-307e5f03\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-who-nbsp-is-responsible-for-nbsp-conducting-your-bank-reconciliations-nbsp\" class=\"wp-block-heading\"><strong>Who&nbsp;is responsible for&nbsp;conducting your bank reconciliations?<\/strong>&nbsp;<\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">The responsibility for bank reconciliations typically falls within the accounting department. In smaller businesses, it might be the business owner or a dedicated bookkeeper. Larger organizations often have accounting clerks or specialists assigned to this crucial task, sometimes with oversight from a controller or accounting manager. <\/p>\n\n<p class=\"wp-block-paragraph\">Segregation of duties is a good practice, meaning the person handling cash receipts and disbursements&nbsp;shouldn&#8217;t&nbsp;be the one performing the reconciliation.&nbsp;<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-55087f5b\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-is-the-bank-reconciliation-statement-considered-a-ledger\" class=\"wp-block-heading\"><strong>Is the bank reconciliation statement considered a ledger?<\/strong><\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">No, the bank reconciliation statement is not a ledger. A ledger is a primary book of accounts that records financial transactions. The bank reconciliation statement is a separate document, a schedule, or a report that compares the cash balance in the company&#8217;s ledger to the balance reported by the bank. It&nbsp;identifies&nbsp;the differences between these two balances and shows how the balances should be adjusted so they agree.&nbsp;<\/p>\n\t\t<\/div>\n\t<\/div>\n<div class=\"wp-block-sage-faq-item\" id=\"faq-item-7482c40a\">\n\t<div class=\"faq-item-question\">\n\t\t\n<h3 id=\"h-when-should-reconciling-items-be-addressed\" class=\"wp-block-heading\"><strong>When should reconciling items be addressed?<\/strong><\/h3>\n\t<\/div>\n\t\t\t<div class=\"faq-item-answer\">\n\t\t\t\n<p class=\"wp-block-paragraph\">Reconciling items should be addressed promptly. Temporary timing differences, like outstanding cheques or deposits in transit, will naturally clear over time. However, errors&nbsp;identified&nbsp;in either your records or the&nbsp;bank&#8217;s, as well as any suspicious items, should be investigated and corrected&nbsp;immediately. That is the best way to&nbsp;maintain&nbsp;accurate&nbsp;records and prevent potential issues from escalating.&nbsp;<\/p>\n\t\t<\/div>\n\t<\/div>\n\t\t<\/div>\n\t<\/section>\n\n\n\n<p class=\"wp-block-paragraph\">&nbsp;<\/p>\n\n\n\n<div class=\"single-cta\">\n\t<div class=\"single-cta__positioner on-scroll-highlight__target\">\n\t\t<div class=\"single-cta__wrapper has-dark-background-color\">\n\t\t\t<div class=\"single-cta__content\">\n\t\t\t\t\t\t\t\t<h2 class=\"single-cta__title h3\">Subscribe to the Sage Advice Newsletter<\/h2>\n\n\t\t\t\t\t\t\t\t\t<div class=\"single-cta__description\">\n\t\t\t\t\t\t<p class=\"cta-content__title\">Get a roundup of our best business advice in your inbox every month.<\/p>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t<a\n\t\t\t\t\t\thref=\"#gate-8949a954-88b2-43bb-8b8a-77c53eb34350\"\n\t\t\t\t\t\tclass=\"single-cta__button button 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class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/accounting-101\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAccounting 101\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/audit\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tAudit\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/bookkeeping\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tbookkeeping\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/business-finances\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tbusiness finances\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/cash-flow\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tcash flow\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t\t\t<li class=\"post-tags__item\">\n\t\t\t\t\t\t\t<a href=\"https:\/\/www.sage.com\/en-ca\/blog\/tag\/small-business\/\" class=\"post-tags__link button button--secondary\">\n\t\t\t\t\t\t\t\tsmall business\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t\t<\/li>\n\t\t\t\t\t\t\t\t\t<\/ul>\n\t\t\t<\/div>\n\t\t<\/div>\n\t<\/div>\n<\/section>\n\n\n<div class=\"alignfull wp-block-sage-related-posts\">\n\t<section class=\"related-posts card-grid has-dark-background-color\">\n\t<div class=\"container\">\n\t\t\t\t\t<div class=\"row\">\n\t\t\t\t<div class=\"col\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--featured h1\">Explore more wisdom<\/h2>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\n\t\t\t<div class=\"row related-posts__featured\">\n\t\t\t\t<div class=\"col card-grid__item\">\n\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-0 post-14929 post type-post status-publish format-standard has-post-thumbnail hentry category-accountants category-money-matters category-people-leadership tag-accounting-101 tag-bookkeeping tag-business-finances tag-business-management tag-cash-flow tag-cfo tag-data-analysis tag-electronic-payments tag-financial-insights business_type-small-business business_type-medium-business business_type-accountants card-post--is-clickable\"\n>\n\t<div class=\"card-post__media-wrapper\">\n\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"1440\" height=\"810\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1271694534-1440x810.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1271694534-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1271694534-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1271694534-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\t<\/div>\n\n\t<div class=\"card-post__content\">\n\t\t\t\t\t<div class=\"card-post__label\">Recommended<\/div>\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-17T07:00:54-04:00\">August 17, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">10 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h3\">\n\t\t\t\t\t\t\t<a\n\t\t\t\t\tclass=\"card-post__title-link\"\n\t\t\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/outstanding-cheques-bank-reconciliation\/\"\n\t\t\t\t>\n\t\t\t\n\t\t\tWhat are outstanding cheques in bank reconciliation?\n\t\t\t\t\t\t\t<\/a>\n\t\t\t\t\t<\/p>\n\n\t\t\n\t\t\t\t\t<p class=\"card-post__description\">\n\t\t\t\tOutstanding cheques can make your bank balance look higher than the cash you actually have available. Learn how to identify and calculate them, reconcile your accounts accurately, and handle stale-dated cheques in Canada.\t\t\t<\/p>\n\t\t\n\t\t\t<\/div>\n\n\t<\/article>\n\t\t\t\t<\/div>\n\t\t\t<\/div>\n\t\t\n\t\t\t\t\t<div class=\"row related-posts__non-featured\">\n\t\t\t\t<div class=\"col col-12\">\n\t\t\t\t\t<h2 class=\"related-posts__heading related-posts__heading--more h4\">More on this Topic<\/h2>\n\t\t\t\t<\/div>\n\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-1 post-14917 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-cash-flow tag-data-analysis tag-financial-insights business_type-small-business business_type-medium-business business_type-accountants industry-financial-services\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/cash-on-cash-return\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0905-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0905-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0905-768x512.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2024\/10\/BrandShoot-LND_June2024_Financial-Services_0905-1214x810.jpg 1214w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-17T06:19:31-04:00\">August 17, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">13 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tCash on cash return: Definition, formula, and example\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-2 post-14862 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-bookkeeping tag-business-finances tag-cash-flow tag-expenses tag-small-business business_type-small-business\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/accounts-payable-asset-or-liability\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-808410210-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-808410210-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-808410210-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-808410210-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-14T06:19:20-04:00\">August 14, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">7 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tIs accounts payable an asset or a liability?\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-3 post-14853 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-business-continuity tag-business-finances 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\/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-08-13T10:42:18-04:00\">August 13, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">12 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tNet 30 payment terms: What they are and why they matter\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\n\t\t\t\t\t<div class=\"col col-6 col-lg-3 card-grid__item\">\n\t\t\t\t\t\t<article\n\t\tclass=\"card-post related-post related-post-4 post-14816 post type-post status-publish format-standard has-post-thumbnail hentry category-money-matters tag-accounting-101 tag-business-finances tag-expenses tag-financial-insights tag-profit-and-loss tag-small-business tag-tax business_type-small-business business_type-medium-business industry-healthcare\"\n>\n\t\t\t<a\n\t\t\tclass=\"card-post__link\"\n\t\t\thref=\"https:\/\/www.sage.com\/en-ca\/blog\/guide-to-dental-practice-accounting\/\"\n\t\t\t\t\t>\n\t\t\t<figure class=\"card-post__media\">\n\t\t\t\t\t\t\t<img decoding=\"async\" width=\"684\" height=\"384\" src=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1285289807-684x384.jpg\" class=\"card-post__image\" alt=\"\" loading=\"lazy\" srcset=\"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1285289807-684x384.jpg 684w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1285289807-768x432.jpg 768w, https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2022\/04\/GettyImages-1285289807-1440x810.jpg 1440w\" sizes=\"auto, (min-width: 48em) 250px, (min-width: 30em) 100vw, 100vw\" \/>\t\t\t\n\t\t\t\n\t\t\t\t\t<\/figure>\n\n\t\t\n\t\t\t\t\t<div class=\"card-post__meta\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"posted-on \"><time class=\"entry-date published\" datetime=\"2026-07-20T06:21:32-04:00\">July 20, 2026<\/time><\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<span class=\"card-post__meta-text\"><span class=\"reading-time\">18 min read<\/span><\/span>\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\n\t\t<p class=\"card-post__title h5\">\n\t\t\tDental practice accounting: A complete guide\t\t<\/p>\n\n\t\t\t<\/a>\n\t\n\t\n\t\t\n\t\n\t<\/article>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t\t<\/div>\n\t\t\t<\/div>\n<\/section>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>One of the best sources for verifying your company\u2019s transaction history is your bank account. But how can you check that this information is correctly reflected in your internal records? Bank reconciliation is the answer. <\/p>\n","protected":false},"author":1847,"featured_media":5522,"menu_order":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_sage_video":false,"post_featured_image_hide":false,"sage_hide_published_date":false,"sage_hide_read_time":false,"sage_hide_share_buttons":false,"_pwl_sage_podcast_buzzsprout_src":"","footnotes":""},"categories":[7],"tags":[162,164,165,266,271,267],"business_type":[3],"lilypad":[],"context":[],"industry":[],"persona":[82,83],"imagine_tag":[35,67],"coauthors":[460],"class_list":["post-7205","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-money-matters","tag-accounting-101","tag-audit","tag-bookkeeping","tag-business-finances","tag-cash-flow","tag-small-business","business_type-small-business"],"sage_meta":{"region":"en-ca","author_name":"Joe Church Woods","featured_image":"https:\/\/www.sage.com\/en-ca\/blog\/wp-content\/uploads\/sites\/12\/2017\/07\/Parfumarija_SageOne_GL_121114-223.jpg","imagine_tags":{"35":"accounting software","67":"Small business"}},"distributor_meta":false,"distributor_terms":false,"distributor_media":false,"distributor_original_site_name":"Sage Advice Canada English","distributor_original_site_url":"https:\/\/www.sage.com\/en-ca\/blog","push-errors":false,"_links":{"self":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/7205","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/users\/1847"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/comments?post=7205"}],"version-history":[{"count":4,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/7205\/revisions"}],"predecessor-version":[{"id":14909,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/posts\/7205\/revisions\/14909"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media\/5522"}],"wp:attachment":[{"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/media?parent=7205"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/categories?post=7205"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/tags?post=7205"},{"taxonomy":"business_type","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/business_type?post=7205"},{"taxonomy":"lilypad","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/lilypad?post=7205"},{"taxonomy":"context","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/context?post=7205"},{"taxonomy":"industry","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/industry?post=7205"},{"taxonomy":"persona","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/persona?post=7205"},{"taxonomy":"imagine_tag","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/imagine_tag?post=7205"},{"taxonomy":"author","embeddable":true,"href":"https:\/\/www.sage.com\/en-ca\/blog\/api\/wp\/v2\/coauthors?post=7205"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}