> ## Documentation Index
> Fetch the complete documentation index at: https://help.agatabo.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Bank Reconciliation

> Match Agatabo balances with bank statements

## Overview

**Bank reconciliation** is the process of comparing Agatabo's bank account balances with your actual bank statements to ensure they match. Differences indicate missing transactions, errors, or timing issues.

## Why Reconcile?

<Note>
  **Benefits of monthly reconciliation:**

  * Catch data entry errors
  * Identify missing transactions
  * Detect unauthorized withdrawals
  * Ensure financial accuracy
  * Meet audit requirements
</Note>

## Reconciliation Process

<Steps>
  <Step title="Get bank statement">
    Obtain statement from your bank (paper or online)
  </Step>

  <Step title="Compare balances">
    Check if Agatabo balance matches bank statement balance
  </Step>

  <Step title="Identify differences">
    List transactions that appear in one system but not the other
  </Step>

  <Step title="Investigate discrepancies">
    Determine the cause of each difference
  </Step>

  <Step title="Make corrections">
    Record missing transactions or fix errors
  </Step>

  <Step title="Verify final balance">
    Confirm balances now match
  </Step>
</Steps>

## Common Reconciliation Differences

| Issue                   | Cause                                               | Solution                                         |
| ----------------------- | --------------------------------------------------- | ------------------------------------------------ |
| **Bank balance higher** | Missing deposit in Agatabo                          | Record the missing deposit                       |
| **Bank balance lower**  | Missing expense or withdrawal in Agatabo            | Record the missing expense                       |
| **Bank fees**           | Bank charged fees not recorded in Agatabo           | Record bank fees as expenses                     |
| **Timing difference**   | Transaction recorded in Agatabo but not yet cleared | Wait for bank to process, or note as outstanding |
| **Data entry error**    | Wrong amount entered in Agatabo                     | Edit the transaction to correct amount           |

## Reconciliation Tips

<Note>
  **Best practices:**

  * Reconcile monthly (at minimum)
  * Keep physical bank statements for reference
  * Document any adjustments you make
  * Investigate all differences - don't ignore small amounts
  * Set up a regular schedule (e.g., first Monday of each month)
</Note>

## Need Help?

<CardGroup cols={2}>
  <Card title="Bank Accounts Overview" icon="building-columns" href="/bank-accounts/overview">
    Learn about bank account tracking
  </Card>

  <Card title="Common Errors" icon="circle-question" href="/troubleshooting/common-errors">
    Troubleshooting guide
  </Card>
</CardGroup>