Skip to content

NEWUnify Agents (MCP): governed AI access to finance data. Early access.See Unify Agents

GLOSSARY

What is bank reconciliation?

DEFINITION

Bank reconciliation matches the cash transactions in a company's ledger to its bank statement and explains every difference.

Also called: Bank rec, Cash reconciliation

How it works

The bookkeeper compares each bank transaction with ledger entries: deposits against customer payments, withdrawals against bill payments and card spend. Items in transit, such as uncleared checks, are listed as timing differences. Anything unexplained, such as a bank fee or a duplicate entry, is corrected. Bank feeds make this faster by bringing statement lines into the ledger for matching.

Example

The October statement shows a closing balance $310 below the ledger. Reconciliation finds a $35 bank fee never recorded and a $275 check that has not cleared yet.

In integrations

Bank reconciliation is where a bank feed earns its value. The Unify Bank Feeds API is designed to push clean, deduplicated transactions with merchant names and memos into ledgers, and to flag missed days for backfill, so the ledger's matching screen has complete data. Reconciliation quality is how accountants judge a feed. Duplicates and missing days create unmatched lines, and each one costs time at month-end.

Related terms

Related products and solutions

Get started

Connect once. Build everything else on top.

Request sandbox access, or book 30 minutes with an engineer to map your integrations.

Free sandbox access. No credit card. Reply within one business day.