It looks like you’re using the legacy version of our accounting software. This content applies to the new version. Read our guide to Account Reconciliation.
Account reconciliation is a key component of keeping your bookkeeping up to date. We’ve made some major changes to our accounting software to make the process of account reconciliation easier than ever.
If you’ve never reconciled before, you can check out this guide to get started. If you were doing account reconciliation in the old system, keep reading!
We’ve moved reconciliation to its own dedicated space in Wave. Click Reconciliation under Accounting to get started.
On the new Account Reconciliation page, you’ll see your accounts grouped by each Financial Institution you've connected to import transactions to Wave.
If the Wave balance matches the most recent statement balance you entered, you’re reconciled!
On a reconciled account, click View to review the transactions in the most recent period. To add a past period, click the arrow next to the Wave balance to expand the account within the list view, and click Add Period.
To begin reconciling a new period, click Reconcile on an account. Enter the Ending Balance Amount that appears on your bank statement, and verify the Ending Balance Date.
With this update, we’ve taken the guesswork out of reconciliation: Once your balances match, the account will be listed as Reconciled up to the last entered balance!
Fixing unreconciled periods
Any time an entered statement balance doesn't match the Wave balance, you'll see a Needs Attention icon on your new reconciliation timeline, and the account will be highlighted in red.
Get started by clicking Fix, and you'll be able to view all transactions in the unreconciled period. Compare each transaction line by line to your bank statement, and mark each transaction as Matched to keep track of your progress.
- There are duplicate transactions, such as an invoice payment that you manually added and an imported bank transaction for the same income.
- Transactions are missing - did you miss entering an invoice or a bill payment?
If there are missing transactions, you can add them by clicking Add Transaction. If you find a transaction that needs to be modified, click on the transaction to Edit it. You can select the check boxes on the left-hand side of a transaction to Merge duplicates, or Delete inaccurate records.
Once the balances match, you’re all done – your account is reconciled!
Why didn’t my reconciliation move over from the old system?
In the old system, there were two ways to input a statement balance:
- Wave would use the balance imported from your Bank Connection
- You could enter a balance manually if you didn’t have a bank connected
While the bank import was the easiest way to get a statement balance to compare to your transactions in Wave, the old system wasn’t able to save this balance. In the update, we’ll pull the balance from your bank connection where possible when you reconcile to pre-fill the statement balance.
I did my reconciliation all the time, why are there periods that Need Attention?
If you entered balances in Wave using the old reconciliation tool, you should see them reflected in the new reconciliation timeline for each account. It’s still possible that there are periods that need attention.
The old system only counted verified transactions when calculating the Wave balance for account reconciliation. Leaving a transaction unverified rather than deleting, editing, or merging it means that it’s always been counted for reports. With the update, now it’s counted towards reconciliation.
All transactions in your Wave account should be matched with their corresponding real world transaction in order to ensure that your reports are accurate.
If you have unreconciled periods between reconciled periods, make sure to check the dates of the transactions included in the period. Likely, there is a transaction that’s not in the right period.
Can I ignore past years and just start in this current fiscal year?
You could add an adjustment entry at the end of a fiscal year to balance the unreconciled account. Read more about this approach here.
It’s best practice to keep your books reconciled for all periods so that you can generate accurate reports. If you’re unsure about which periods you need to reconcile, your professional bookkeeper or accountant is the best person to ask.
What’s the difference between Mark as Reviewed and Matched?
On the Transactions page, you can mark a transaction as Reviewed. This status helps you keep track of transactions that you've reviewed for completion, like adding the correct category, sales tax, and notes.
On the Reconciliation transactions view, you can mark a transaction as Matched. This status helps you distinguish transactions that you've matched against your bank statement during reconciliation.