Reconciliation compares two records of the same money, such as a bank statement and a ledger, and a break is any difference between them. Beginners often try to force the numbers to match. The work is finding why they differ. Common causes are timing, duplicates, missing entries, and amounts recorded differently, and each needs a different fix.
Investigating a break in order
- Check timing first: items recorded in one system this month and the other next month explain many breaks.
- Look for duplicates, where one transaction was entered twice in one record but once in the other.
- Compare amounts digit by digit, since transposed figures hide inside otherwise matching totals.
- Trace one item end to end through both systems before drawing conclusions about the whole break.
Document the cause for every break you clear, not just the adjustment. The next person facing the same break should find your reasoning, not just your number.