Bank reconciliation checks the business’s cash records against the bank statement. Differences can arise from timing, bank charges or recording mistakes. Reconciling means identifying and explaining those differences, then making the appropriate corrections to the accounting records. Source: Xero: Bank reconciliation

Follow each unmatched amount

Compare the payment reference, amount and date with the booking or supplier record. Keep unresolved items in a review list with an owner. This helps the team investigate the actual difference instead of forcing unrelated transactions to match.

Retain the explanation

Record why an adjustment was made and keep the supporting evidence. For a payment provider’s combined transfer, check the transaction breakdown as well as the bank receipt. This makes the reconciliation easier for a colleague to review and helps separate a bank match from the underlying booking records.

Written and updated by Travelgenix. Sources checked on 19 October 2026. Practical advice and examples are Travelgenix editorial guidance.