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Account Reconciliation
Account Reconciliation
Written by Ali Aas
Updated over a week ago

Account Reconciliation is a bookkeeping process by which you compare the transactions in your business’s ledger to an external source of truth to catch clerical errors and check for inaccuracies. A Bank Reconciliation is the most common type of reconciliation, where you compare a bank statement provided by your bank to the same account in your Ambrook Ledger over a shared time period.

Ambrook connects directly with your financial accounts to reduce manual entry, which should prevent your internal ledger from getting out of sync with your bank’s records. Many bookkeepers or operations will wish to do reconciliation nonetheless to be sure their books are accurate and that neither the bank software, the connecting software, or Ambrook’s software has made an error. Ambrook’s reconciliation feature makes the process quick and easy.

Initiate a Reconciliation

From the Ledger tab, click the Reconcile button in the top right corner to initiate an account reconciliation.

Select an Account

You will be brought to a list that shows all of your connected accounts and their current balances. Select the account you wish to reconcile from the list.

Enter Bank Statement Information

Enter the Date Range and Ending Balance for the Bank Statement (or other external source of truth) that you want to reconcile against.

It is important that these values are entered correctly, as your statements may not reconcile if they are looking at different dates or calculating from a different Ending Balance.

The Reconciliation Screen

Once that data is entered you will be brought to a pre-filtered and populated Reconciliation screen where you can compare your bank statement transactions to those on the Ambrook Ledger.

The list of transactions shown contains only transactions from the selected account during the statement period specified. Compare the list to your bank statement and use the “Reconciled” checkbox on the right to check off transactions that match. As you do so, the equation above the transaction list will show your progress towards the Statement Ending Balance.

When you have checked off all of the transactions in your bank statement, there should be no transactions left to reconcile in Ambrook, the Ending Balance shown in the equation should match your Statement Ending Balance. The “Difference” figure should also be at zero. When this is the case, you are done; the Save button will turn into a Finish button and you can click that to return to the ledger.

If you don’t finish reconciling in a single sitting, just click the Save button to return to the ledger. Any transactions that you reconcile will remain checked so you can pick the work back up when you return.

What if there is a discrepancy?

There are three broad categories of discrepancies that can occur.

There’s a transaction on my statement that isn’t in Ambrook (or vice versa)

This can happen very rarely due to connection errors between Ambrook and your bank's systems. Click the “Adjust” button where you can describe the discrepancy to Ambrook Support and we can help you fix the error or make an entry that will resolve the discrepancy.

There’s a transaction on both my statement and in Ambrook, but the amount or direction is different in each.

As above, the best option is to click the “Adjust” button where you can describe the discrepancy to Ambrook Support and we can help you fix the error or make an entry that will resolve the discrepancy.

My Statement Beginning Balance isn’t the same as my Ambrook Beginning Balance

Ambrook calculates the account’s starting balance based on previous transactions in the account. This should match the starting balance on your bank statement, especially if you reconcile your accounts regularly.

If it does not match, it is likely due to a reconciliation error in the past. We suggest going backwards month-by-month until you find a month where the Beginning Balance does match and then reconcile each month going forward until you find the error. When you identify the error, click the “Adjust” button and Ambrook Support will help you resolve it at the source.

Reconciliation is persistent

When you complete reconciliation for a given period, Ambrook saves that information. So next time you go to reconcile an account, we’ll tell you the last date it was reconciled up to.

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