Account Reconciliation ensures that the transactions entered in your Wave account match what happened in the real world. When your accounts are reconciled, you can be confident that your bookkeeping is up to date, and your reports are accurate.
Before you dive in to do your reconciliation, you’ll need a copy of your bank statement. You can open your online banking in another tab, download and print a copy of your bank statement, or open your bank statement on your tablet or phone. You’ll use the information on your bank statement to reconcile your accounts in Wave.
How do I start reconciling my accounts?
You can get into "bank reconciliation mode" when you filter by Account on the Transactions page.
Go to your Transactions page and click the Account: All filter. Select the account that you want to reconcile, such as Checking.
Tip: Turn off any filters that you may have turned on so you can see everything up front.
You should now see three boxes at the top of the transactions page!
What do all of these boxes mean?
The Ending Balance is what your online bank statement says is your balance as of a particular date. You can change this date by using the date filters.
Let's say you look at your online bank statement from January 1st to January 31st and the ending balance is $1759.98.
- Select your date filters to January 1st to January 31st.
- Enter the Ending Balance that is shown on your bank statement.
The Verified Balance is the total amount of transactions you have verified in Wave. Tip: Learn more on How to verify a transaction.
The Difference is the amount difference between your bank statement balance and your Wave verified balance. Why would this happen? There are a couple explanations:
- Not all transactions have been verified.
- 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
For more details on what has been verified and the difference click the + at the top right of Verified Balance and Difference.
Now that I know all of this, what do I do?
Start categorizing and verifying!
The goal is to get the Difference to $0.00. This means all of the transactions on your bank statement are in Wave.
Let's say you have a transaction to categorize to meals and entertainment and it's unverified.
Once I verify the transaction, notice the verified balance increases and my difference increased because it was another expense. But don't get discouraged! Just keep categorizing and verifying.
I have only one transaction left to verify in my list. It's an income transaction for the remaining balance.
Success! My difference is now $0.00 which means Wave matches up with my online bank statement.
The account is now fully reconciled!
Quick Tips & Reminders:
- Filter by account to get into "bank reconciliation mode".
- Turn off any filters except the date range you want to look at.
- You can reconcile at any time during the month, it doesn't have to be a month at a time.
- This tool is only available for cash, bank, or credit card payment accounts. You will not be able to reconcile accounts like Owner Investment or Shareholder Loan.
- Navigate to Accounting > Reconciliation in the left-hand menu
- Look for the account you’d like to reconcile. If you haven’t yet connected a bank or uploaded a statement, you’ll need to get your transactions into Wave before you start.
- Click Get Started, and enter your bank balance for the final date of the period you’d like to reconcile.
- If the bank balance and the Wave balance are the same, the account is reconciled. If the balances are not the same, Wave will load a page with all of the transactions in the period, so that you can review them.
Review Your Transactions
To ensure that all of the transactions in your account are accurately recorded, it’s important to check them against your bank statement.
- Select the check-mark to the right of a transaction to mark it as Matched. Marking a transaction as Matched means that you've matched it with the corresponding transaction on your bank statement.
- As you match transactions, you’ll see the progress bar at the top of the page move to indicate how many transactions in a period you have matched with a transaction on your bank statement, and how many are left to go. Your Wave balance is always the total of all transactions in the account, whether you have matched them or not.
Fix your transactions
When you review and match the transactions in Wave to the transactions on your bank statement, it makes correcting errors easy. You can add and modify transactions right in the Reconciliation view, so it’s easy to manage duplicates, add missing transactions, and fix mistakes.
- If the most recent periods you've entered for an account are not reconciled, Wave will highlight the account and display it at the top of the list of accounts within a Financial Institution.
- If a period is unreconciled, you’ll see a red Needs Attention indicator on the timeline for that account. You can review all unreconciled periods within an account on the timeline to see where we’ve identified any issues.
- Click Fix to review transactions within the oldest unreconciled period. You can also click on the Needs Attention icon for a specific period to view only the transactions within that period.
- Review your transactions for accuracy by comparing the transactions in an unreconciled period to the transactions on your bank statement. 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.
It’s my first time reconciling, and there are so many transactions! Help?
If you’re entering a reconciliation balance for the first time, Wave will automatically include all transactions into this single period. To work on smaller periods, like individual months, you can input more periods for an account. Expand the timeline view for an account, and click Add Period.
I have a ton of transactions, and none of them are matched? Can I match in bulk?
No, there isn’t a bulk-match feature.
How can I delete a period that I added by mistake, or that I no longer need?
Click on the icon for the period from the timeline view. On the transactions view, click the edit pencil next to the statement ending balance. In the edit modal, click the trash icon.
I reconciled my account, but now when I go back, Wave is telling me to Fix my reconciliation. Why?
You can’t lock a period in Wave, or prevent transactions from being entered. If you accidentally entered a past transaction in an account that was already reconciled, the account will no longer be reconciled. Click Fix or click the Needs Attention icon on the reconciliation timeline to review and edit the transactions within the unreconciled period.
Can I reconcile my Cash on Hand account?
Yes you can, but Cash on Hand is an account for recording cash on its way to being deposited. It shouldn't be the final stop for the funds you receive from sales. You can learn more about best practices for using Cash on Hand, and how to set up and reconcile a Petty Cash account here.