Bank reconciliation
A bank reconciliation checks your bank statement against what LedgerLite holds for that bank account. You enter the statement’s balances, tick the entries that are on the statement, and complete it when nothing is left unexplained. Completing posts nothing to your accounts. It keeps the statement as a record, and it stops anyone from adding or changing bank entries dated on or before the statement’s end date.
- Where
- Banking & cash › Accounts › Reconciliation
- Number
- REC-000001 when you complete one. An undo gets an RCV- number. A draft has no number
- Posts to
- Nothing
- Who
- Managers and admins. Only admins can undo
What it’s for
Section titled “What it’s for”- Prove that the books agree with the bank for a stretch of days.
- Find entries that are in the books but not yet on the statement, such as a cheque that has not cleared.
- Protect the checked entries from later changes.
Only accounts of the kind Bank can be reconciled. A cash account or a till drawer cannot. See Cash and bank accounts.
The steps
Section titled “The steps”- Press Start reconciliation and enter the statement’s dates and balances.
- Tick each entry that is on the statement. The two amounts at the top move as you tick.
- Press Save ‹n› cleared to keep your ticks.
- When both amounts are 0.00, press Complete reconciliation.
You can stop at any time and come back. The unfinished statement is a Draft, and the account’s row shows Resume draft. Each bank account can have only one draft at a time.
Statements follow one another
Section titled “Statements follow one another”- A new statement starts the day after the last completed one ended. The start date and the opening balance are filled in and cannot be typed over.
- The first statement of an account can start on any day. Its opening balance must equal what LedgerLite holds in that account just before the start date.
- Entries you did not tick come back on the next statement, marked Earlier statement, until a statement clears them.
- A statement covers at most 366 days and cannot end after today.
Fields
Section titled “Fields”Starting a statement
Section titled “Starting a statement”| Field | What it means | What it changes |
|---|---|---|
| Bank account | The account to reconcile. Accounts that cannot start say why: “draft already open”, “archived”, or “last reconciled ‹date›” | Which account is checked. It cannot change once the draft exists |
| Statement start date | The first day on the statement | Which entries are offered. Fixed when an earlier statement exists |
| Statement end date | The last day on the statement | Which entries are offered, and the date up to which bank entries are locked when you complete |
| Opening balance on the statement | The balance printed at the start of the statement | Must match the carried-forward balance. Fixed when an earlier statement exists |
| Closing balance on the statement | The balance printed at the end | What the ticked entries must add up to |
| Statement reference | Your name for the statement, up to 120 characters. For example, “August 2026” | Shown in the list and on search |
| Notes | Optional, up to 2,000 characters | Kept with the statement |
Type balances as plain numbers, such as 1250.50. Balance in LedgerLite is shown under the fields for the end date you chose. After the draft exists, change these on the draft’s Statement details panel with Save statement details.
Matching entries
Section titled “Matching entries”| Field | What it means | What it changes |
|---|---|---|
| Search movements | Reference, source or memo, up to 120 characters | Shows only matching entries |
| Period | Any period, This statement or Earlier statements | Shows only those entries |
| Show | All items, Saved as cleared or Not cleared yet | Shows only those entries |
| Cleared (tick box) | The entry is on the statement | Moves the two amounts. Saved only when you press Save ‹n› cleared |
The list has the columns Cleared, Date, Details, Reference (the entry number, which opens the accounting entry), Money in and Money out. Each row’s ⋯ menu has Open original document, which opens the receipt, payment or bill in a new tab so your ticks stay where they are. You can tick up to 20,000 entries in one save.
The two amounts
Section titled “The two amounts”| Amount | What it means |
|---|---|
| Statement left to match | The closing balance, less the opening balance and the entries you ticked |
| LedgerLite balance left to match | The LedgerLite balance, less the closing balance and the entries not yet on the statement |
Both must be exactly 0.00 before you can complete. While ticks are not saved, the amounts say Not saved yet and Complete stays off. The line beside them says what to do next, for example “Keep ticking items that are on the statement until both amounts are 0.00.” When they agree it says Balanced.
The statement list
Section titled “The statement list”The list shows each statement with Statement, Bank account, Period, Statement closing balance and Status: Draft, Completed, Undone or Discarded. You can filter by number, reference or notes, bank account, status, and by the date the statement ended (From and To, then Apply). The Bank accounts button shows each account’s balance in LedgerLite, when its last statement ended and how many items are not yet cleared.
Buttons
Section titled “Buttons”| Button | When you see it | What happens | Accounts |
|---|---|---|---|
| Start reconciliation | On the list, and on each bank account | Opens the form for a new statement | No change |
| Resume draft or Resume matching | An account with a draft | Opens the draft | No change |
| Save ‹n› cleared | The ticks differ from the saved ones | Saves which entries are ticked | No change |
| Statement details | On a draft or a finished statement | Opens the statement’s figures. On a draft you can change them | No change |
| Complete reconciliation | Greyed out until the ticks are saved and both amounts are 0.00 | Asks you to confirm, then records the statement and locks bank entries up to its end date | No change to your accounts |
| Discard draft | On a draft | Asks to confirm, then throws away the draft and its ticks. You can start a new one | No change |
| Undo reconciliation | A completed statement, admins only. Also in the ⋯ menu of its row in the list | Asks for a reason, then unlocks the bank entries. See below | No change to your accounts |
| Back to reconciliation | Inside a statement | Returns to the list | No change |
When you leave a draft with ticks or details that are not saved, the app asks first.
What gets posted
Section titled “What gets posted”Nothing. Completing a reconciliation creates no journal entry and changes no balance. Neither does undoing one. The app does this instead:
- It keeps a record numbered like REC-000001: the statement’s balances, which entries were ticked and which were not, and who completed it and when.
- It locks the bank account. From then on, no entry dated on or before the statement’s end date can be added, moved or changed on that account.
A worked example
Section titled “A worked example”A bank account starts at 0.00. On one day you take a deposit of 1,000.00 and make two payments: 300.00 and 105.00. The 105.00 cheque has not reached the bank. The statement shows an opening balance of 0.00 and a closing balance of 700.00.
| Step | Working | Result |
|---|---|---|
| Tick the deposit and the 300.00 payment | 1,000.00 − 300.00 | Cleared: 700.00 |
| Statement left to match | 700.00 − (0.00 + 700.00) | 0.00 |
| LedgerLite balance left to match | 595.00 − (700.00 + (−105.00)) | 0.00 |
Both are 0.00, so you can complete. The 105.00 cheque comes back on the next statement as Earlier statement. If the next statement opens at 700.00 and closes at 595.00, ticking the 105.00 payment brings both amounts to 0.00 again.
What the lock covers
Section titled “What the lock covers”The lock applies to every posting to that bank account: receipts, supplier payments, card payouts, transfers, expenses, bank charges and manual journals. It covers new entries and changed dates. Deleting an entry on a locked date is refused. Entries dated after the end date are not affected.
An edit that leaves the bank line exactly as it was can still be saved. For example, you can change the category or note of a paid expense that is already reconciled. You cannot change its amount, its date or its bank account.
Bank fees and interest on the statement
Section titled “Bank fees and interest on the statement”Fees and interest are on your statement but not yet in your books. Record them first, dated on the day the bank took or paid them, on Money in or out: choose Bank charges or Interest received. The new entry then appears in the list. Tick it like any other. A fee for a bounced cheque is recorded from Cheques.
You can do this while the draft is open. If the statement is already completed and the fee falls on a locked date, undo the reconciliation first.
Where it shows up
Section titled “Where it shows up”| Place | What changes |
|---|---|
| Statement list | A Completed row with a REC- number. An undo makes the row Undone and gives the undo its RCV- number |
| Bank accounts panel | Last statement ended and Items not yet cleared are updated |
| Screens that post to the bank account | They refuse a date on or before the end date. See below |
| Cashbook | Nothing changes. It shows the same entries |
| Your accounts and reports | Nothing changes |
What the app blocks
Section titled “What the app blocks”Starting and matching
Section titled “Starting and matching”| Situation | What you see |
|---|---|
| The account already has a draft | This bank account already has a draft reconciliation. Resume that draft instead. |
| The account is archived | This bank account is archived. |
| End date after today | The end date cannot be after today. |
| End date before start date | The start date cannot be after the end date. |
| More than 366 days | A statement can cover at most 366 days. |
| Balance not a number | Enter the closing balance as a number, such as 1250.50. |
| Opening balance does not match | The opening statement balance does not match the required carried-forward balance. |
| Start date skips days after the last statement | The next reconciliation must start the day after the latest effective statement. |
| The last statement changed while you worked | The last statement for this account has changed. Reload to start from it. |
| Complete while the amounts are not 0.00 | Both amounts must be 0.00 before this can be completed. Some screens show instead: Both the statement difference and the book difference must be zero. |
| Complete with ticks not saved | ‹n› ticks are not saved yet. Save them first, then complete. |
| Complete with statement details not saved | You have statement details that are not saved yet. Save them or close the panel, then complete. |
| Someone else changed the draft | This reconciliation changed. Reload it before saving. or The reconciliation changed while you were working. Reload it and try again. |
| A ticked entry is no longer available | One or more selected movements are no longer available. Reload the reconciliation. |
| An entry was cleared by another effective statement | A selected movement was already cleared by an effective reconciliation. Reload the draft. |
The app never lets you complete with a difference, and it never posts a correction for you. If the amounts will not reach 0.00, something on the statement is missing from your books, or an entry is ticked that should not be.
After a reconciliation is completed
Section titled “After a reconciliation is completed”Screens that post to the bank account refuse a date on or before the end date. The words depend on the screen, for example:
- A bank account in this journal is reconciled through ‹date›. Undo that reconciliation first.
- The Bank account is reconciled through this date. Choose a later date or review the reconciliation. (card payouts)
- This bank account is reconciled through the selected date. Choose a later date or review the reconciliation. (cheques)
- This Bank account is reconciled through the correction date. Void the latest reconciliation, then retry. (an expense correction)
Undoing
Section titled “Undoing”| Situation | What you see |
|---|---|
| A manager looks at a completed statement | This reconciliation is complete and locked. You don’t have permission to undo it. |
| It cannot be undone yet | This reconciliation cannot be undone yet. followed by the reason below |
| A later statement exists | A later reconciliation exists for this account. Undo that one first. |
| The account has an open draft | This account has a draft reconciliation. Discard the draft first. |
| It was already undone | It has already been undone. |
| No reason, or under 5 characters | Explain why you are undoing this, in at least 5 characters. |
| Undo date before the statement ended | The undo date cannot be before the statement ended (‹date›). |
| Undo date after today | The undo date cannot be after today. |
| Box not ticked | Tick the box to confirm. |
Notices that do not stop you
Section titled “Notices that do not stop you”- Ending today. If the end date is today, the end-date field says that anything dated today will be locked once you complete. The confirmation says: This statement ends today. Receipts, supplier payments and card payouts dated today are then refused until you undo. If today is still open, end the statement on yesterday.
- A lost answer. If the app cannot tell whether a save or completion went through, it keeps what you entered and shows Check status. Press it before you try again.
Who can do it
Section titled “Who can do it”| Action | Admin | Manager | Cashier |
|---|---|---|---|
| See statements and drafts | Yes | Yes | No |
| Start, tick, save, change statement details, discard a draft | Yes | Yes | No |
| Complete a reconciliation | Yes | Yes | No |
| Undo a reconciliation | Yes | No | No |
These are the standard roles. Your administrator can give a custom role each of these actions separately in Settings › Users & access. The right to undo is given to admins only, unless you give it to someone else.
Fixing a mistake
Section titled “Fixing a mistake”- You ticked the wrong entry. Untick it and press Save ‹n› cleared. Nothing is locked until you complete.
- A date or balance is wrong. On a draft, open Statement details, change it and press Save statement details.
- You chose the wrong bank account. The account cannot change on a draft. Press Discard draft, then start again with the right account.
- The statement has an item that is not in your books. Record it first, then tick it. Fees and interest go on Money in or out. Money moved between your own accounts goes on Transfers. Card money that reached the bank goes on Card payouts. A cheque that cleared is on Cheques.
- Your books have an item that is not on the statement yet. Leave it unticked. It comes back on the next statement.
- You completed it and found a mistake. An admin undoes the latest reconciliation: press Undo reconciliation, give a reason and an undo date, and tick the confirmation. The bank entries unlock and the statement stays in the list as Undone. Fix the entry, then start a new reconciliation. It begins the day after the previous completed statement ended.
- A later statement exists. Undo the latest one first, then the one before it. Only the latest can be undone.
- You need to change an entry on a locked date. Undo the reconciliation, change the entry, then reconcile again. Only the category, VAT code, supplier, reference or note of a paid expense can be corrected while the lock is on. Its amount, date and bank account cannot.