Common terms when reconciling your bank account

Statement date

The end date of the bank statement you're reconciling.

Statement end balance

The bank statement shows the closing balance.

Total received and paid

This shows the total value of reconciled payments (money out) and receipts (money in). We update these amounts as you mark each transaction as reconciled.

Starting balance

The Starting Balance is the total of reconciled transactions up to the current statement date. This may not always match the closing balance of your previous reconciliation. It'll include reconciled errors or late entries from prior periods. Check that the Starting Balance matches the opening balance on your bank statement. As long as your reconciled balance matches the closing balance on your bank statement, the reconciliation is successful.

Target balance

This is the same as your Statement End Balance. At the end of your reconciliation, the Reconciled Balance will match.

Reconciled balance

A vital part of reconciliation. This is the total of reconciled transactions, plus the starting balance. The aim of any bank reconciliation is to make sure that the closing balance on your bank statement matches the Reconciled Balance in Sage Accounting. When you start, this will always match the starting balance. As you tick transactions, the reconciled balance updates. You finish the reconciliation when the reconciled balance matches the target balance and your bank statement.

Difference

When you start, this is the difference between the Starting Balance and the Statement End Balance. As you reconcile, the Difference updates. The reconciliation is successful when the difference is zero.