What period should I reconcile?

Reconcile each bank account to the statement period end each month. Using statement end dates ensures consistency across periods and aligns reconciling items with the reporting period.

How do I handle outstanding checks?

List each outstanding check with number, date, and amount. Investigate items older than a defined threshold and clear checks if reissued or voided; attach supporting correspondence.

What supporting documents are needed?

Include the bank statement, deposit slips, canceled checks, ACH remittance advices, and any vendor or customer correspondence that explains reconciling items.

Can reconciliations be eSigned?

Yes. Electronic signatures meeting ESIGN and UETA criteria are acceptable for internal sign-off; ensure the platform captures intent, attribution, and an audit trail for proof.

How are bank fees recorded?

Record bank fees and interest as adjusting entries in the ledger when identified on the statement, and include a brief description and supporting bank page.

What if balances never clear?

Investigate persistent reconciling differences promptly; unresolved variances can indicate posting errors, missed entries, or fraud and should be escalated to management.

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Monthly Bank Reconciliation

Monthly Bank Reconciliation

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What a Monthly Bank Reconciliation Is and Why It Matters

A Monthly Bank Reconciliation is an accounting process that compares an organization’s cash ledger (book balance) to the bank statement ending balance for the same period. The reconciliation identifies timing differences such as deposits in transit and outstanding checks, records bank fees and interest, and produces adjusting journal entries so internal records match external statements. Performed monthly, it supports accurate financial reporting, cash forecasting, and internal controls by detecting errors, omissions, and possible fraud before they affect financial statements or regulatory filings.

Primary Benefits of Performing Monthly Reconciliations

Monthly reconciliations reduce accounting errors, improve cash visibility, and strengthen internal controls, which aids accurate reporting and timely decision-making.

Who Prepares and Reviews Monthly Bank Reconciliations

Clear role separation—preparer, reviewer, approver—helps reduce errors and provides audit evidence for internal and external inspections.

Staff Accountant responsible for ledger entries and reconciling item research.
Controller or Accounting Manager who reviews adjustments and approves reconciliations.
External CPA or auditor performing periodic review or year-end validation.

Typical Signatories and Their Roles

Preparer

Senior or staff accountant who compiles bank statements, posts adjustments, documents reconciling items, and produces the reconciliation report for review.

Reviewer

Controller or finance manager who validates the reconciling items, confirms supporting documentation, signs off electronically, and approves journal entries for posting.

Required Data Elements on a Monthly Bank Reconciliation

Bank Statement Ending: Statement ending balance

Book Balance: Ledger cash balance

Outstanding Checks: Uncleared checks list

Deposits in Transit: Uncredited deposits

Bank Adjustments: Fees, interest, NSF items

Reconciliation Date: Period end date

Core Components of a Professional Monthly Bank Reconciliation

A complete reconciliation combines statement data, book balances, a detailed reconciling items schedule, supporting source documents, and sign-off by authorized personnel to form a verifiable record.

Header

Company name, account name, bank, period, and statement end date included for traceability and filing.

Balances

Bank statement ending balance and book (ledger) balance shown side-by-side before adjustments.

Reconciling Items

Detailed list of outstanding checks, deposits in transit, errors, and items not yet recorded in books.

Adjusting Entries

Journal entry recommendations with amounts and narration for posting to the general ledger.

Supporting Evidence

Bank statement pages, deposit slips, canceled checks, vendor remittances, and electronic payment remittance data.

Signatures

Preparer and reviewer names, dates, and electronic signatures for internal control and audit trail.

Step-by-Step: Completing a Monthly Bank Reconciliation

Follow a consistent sequence to reconcile quickly and maintain an audit trail for each monthly close.

01

Obtain statement: Download the bank statement for the period end.
02

Compare balances: Match bank ending balance to ledger beginning point.
03

Identify items: List outstanding checks and deposits in transit.
04

Prepare entries: Record fees, interest, and error corrections.

Customizing an Online Reconciliation Workflow

Configure fields, attachments, and signer order to match your accounting controls and integration points.

Field	Configuration
Pre-fill fields	Use automatic data mapping from ERP or bank feed.
Attachment required	Require bank statement PDF before submission.
Signer order	Preparer then reviewer then approver sequence.
Integrations	Export to ERP, or attach to NetSuite, QuickBooks, or cloud storage.

Where to Send or File Completed Reconciliations

After preparation and review, reconciliations should be stored in the accounting system and shared with stakeholders according to your retention policy.

Internal Filing: Attach PDF to the general ledger month folder.
Accounting System: Post adjusting entries in ERP and link reconciliation.
External Review: Share with external auditors or tax preparers as requested.
Offsite Archive: Store long-term copies in secure cloud archive.

Delivery Options and Technical Considerations

Use integrations (ERP, cloud storage) and secure eSignature with audit trails to preserve evidence and reduce retrieval time.

Email delivery: Secure PDF attachment
Cloud storage: Versioned, access-controlled
eSignature: Audit trail, signer authentication

Monthly Schedule and Close Deadlines

A disciplined monthly schedule ensures reconciliations are completed before financial statements are finalized and auditors are engaged.

Statement receipt:

By 5th business day after month end

Preparer completion:

By 10th business day after month end

Reviewer sign-off:

By 15th business day after month end

Adjusting entries posted:

By month close journal cutoff

Storage and archiving:

Within 30 days to official records

Common Pitfalls When Preparing Reconciliations

Using different period cutoffs for bank and books creates persistent timing differences that complicate month-to-month comparisons and audit reconciliation.
Failing to attach supporting documents for reconciling items forces manual follow-up and increases the risk of unresolved reconciling balances at period close.
Recording bank service charges or NSF items in the wrong period causes misstated cash and expense accounts and may affect reported net income.
Duplicate entries or failing to clear returned checks inflate outstanding items and mask potential cash control issues or fraud.

Risks of Inaccurate or Missing Reconciliations

Misstated Financials: Inaccurate reporting

Audit Findings: Control deficiencies

Bank Charges: Unrecognized fees

Tax Exposure: Incorrect taxable income

Fraud Risk: Undetected theft

Operational Delay: Slower close process

eSignature Pricing Comparison for Reconciliation Workflows

Estimated starting prices and core feature availability for common eSignature vendors. signNow is listed first per platform comparison requirements.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes	Yes	Yes	Yes	Varies
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions About Monthly Bank Reconciliations

Answers to common questions about timing, errors, supporting documents, and electronic signing to help standardize your monthly process.

Need help? Contact support

What period should I reconcile?
Reconcile each bank account to the statement period end each month. Using statement end dates ensures consistency across periods and aligns reconciling items with the reporting period.
How do I handle outstanding checks?
List each outstanding check with number, date, and amount. Investigate items older than a defined threshold and clear checks if reissued or voided; attach supporting correspondence.
What supporting documents are needed?
Include the bank statement, deposit slips, canceled checks, ACH remittance advices, and any vendor or customer correspondence that explains reconciling items.
Can reconciliations be eSigned?
Yes. Electronic signatures meeting ESIGN and UETA criteria are acceptable for internal sign-off; ensure the platform captures intent, attribution, and an audit trail for proof.
How are bank fees recorded?
Record bank fees and interest as adjusting entries in the ledger when identified on the statement, and include a brief description and supporting bank page.
What if balances never clear?
Investigate persistent reconciling differences promptly; unresolved variances can indicate posting errors, missed entries, or fraud and should be escalated to management.

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