Series 1: Things I Notice as an Accountant Episode 3: What an old unreconciled balance can tell you. 📊

An unreconciled balance sitting in your books for months?

It might look like a small issue.

But as an accountant, I see it as a reason to investigate. 👀

Because an old unreconciled balance can tell you more than you think.

Here are 5 things I look for:

🔹 1. A payment that was never recorded The money left the bank, but the transaction never made it into the accounting software.

🔹 2. A duplicate entry The same expense or payment was recorded twice, making the balance inaccurate.

🔹 3. An invoice that was never settled A customer payment or supplier transaction may have been incorrectly matched or left outstanding.

🔹 4. A transaction posted to the wrong account The amount might be correct, but it's sitting in the wrong place.

🔹 5. An error carried forward month after month Sometimes, an old difference is simply ignored during each reconciliation, allowing the problem to continue.

Here's what concerns me most:

When an unreconciled balance keeps rolling forward, it can make the financial reports look correct at first glance while hiding errors underneath.

And the longer it stays unresolved, the harder it can become to trace the original transaction.

My approach?

I don't just try to make the balance match.

I investigate the difference, trace it back to the source, and make sure the correction is supported by evidence.

Because reconciliation isn't just about matching numbers. It's about knowing your numbers can be trusted. ✅

💬 Question for business owners and fellow accountants: Do you clear old unreconciled balances as soon as you find them, or do they sometimes get carried forward to the next month?

#Accounting #Bookkeeping #BankReconciliation #FinancialReporting #SmallBusiness