Monthly Bank Reconciliation

End-of-month reconciliation of general ledger accounts to statements and sub-ledgers. Covers key accounts, variance investigation, and management certification. Takes 2-4 hours. Best for: Accounting staff, controllers.

4 steps

Banking

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Process steps

Reconcile cash and correspondent accounts

5 days from previous step

task

Reconcile the bank's nostro accounts (accounts at other banks) to statements received. Tie Fed account to Federal Reserve statement. Investigate all outstanding items. Cash accounts should reconcile to the penny - any variance is a problem.

Form fields in this step

Cash Accounts Reconciled *

Outstanding Items Total

Items Over 30 Days

Reconcile loan and deposit sub-ledgers

7 days from previous step

task

Tie loan system totals to general ledger loan accounts. Tie deposit system totals to GL deposit liability accounts. Investigate any variances. Sub-ledger to GL reconciliation proves your systems are in balance and catches posting errors.

Form fields in this step

Loan Sub-ledger Balanced *

Deposit Sub-ledger Balanced *

Variance Details (if any)

Reconcile suspense and clearing accounts

10 days from previous step

task

Review all suspense and clearing accounts. These should clear daily in normal operations. Investigate and clear any items over 30 days. Items stuck in suspense often indicate processing problems or losses hiding in plain sight.

Form fields in this step

Suspense Account Balances *

Items Over 30 Days *

Clearing Actions Taken

Management certification and filing

15 days from previous step

task

Prepare the reconciliation summary for management review. Get appropriate sign-offs. File completed reconciliations per retention schedule. Report any significant issues or unresolved variances. Clean reconciliations are an examination focus area.

Form fields in this step

All Reconciliations Complete *

Management Sign-off Obtained *

Issues Escalated *