Bank reconciliation is a way to make sure that all of the transactions on your bank statement are in Wave. It can also be used to track any outstanding checks that haven't been deposited and have not appeared on your bank statement yet.
Reconciliation is determined by the Difference between your Statement Ending Balance for a certain period, and your Wave Balance.
What do all of these terms mean?
The Ending Balance is what your bank statement says is your balance as of a particular date.
The Wave Balance is the total amount of transactions you have reviewed and verified in Wave. Tip: Learn more on How to verify a transaction.
The Difference is the amount of your bank statement balance minus your Wave verified balance. Why would this happen? There are a couple explanations:
- There are outstanding cheques that have not cleared the bank yet. These will appear in Wave, but might not be on your bank statement yet.
- There might be duplicate transactions, such as an invoice payment that was manually added and an imported income transaction.
- There are transactions missing
The goal is to get the Difference to $0.00.
For screenshots and step-by-step guides,