Bank reconciliation step by step – account 1930, discrepancies and checklist
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Bank reconciliation involves comparing a company’s bank transactions and balance against the bank account in its accounting records, often BAS account 1930. The purpose is to detect missing payments, duplicate entries, fees, and timing differences before discrepancies affect reports or the annual accounts.
The most important points in brief: Retrieve bank statements and the general ledger for the same period. Verify the opening balance, match every transaction, identify discrepancies, and document how they were resolved. Reconciliation should be performed regularly according to established procedures; the frequency is determined by the nature of the business.
What is bank reconciliation – and why is it necessary?
A bank reconciliation is a check to ensure that the bank transactions recorded in the accounting match the bank's actual transactions. It helps detect errors before the company’s liquidity, balance sheet, and decision-making basis become misleading. Bank reconciliation is a control routine, not a replacement for vouchers or correct bookkeeping.
According to the Swedish Bookkeeping Act, business transactions must be traceable and verifiable. The Swedish Accounting Standards Board’s guidance on bookkeeping covers regular reconciliation and the documentation of discrepancies. There is no general rule stating that all companies must perform a bank reconciliation on the last day of every month. Instead, the company needs to choose effective intervals and routines based on its business operations.
Bank account, general ledger, and discrepancy – quick overview
| Source material | What you check | Common discrepancy |
|---|---|---|
| Bank statement | Booked and actually executed bank movements | Bank fee missing from bookkeeping |
| General ledger, e.g., 1930 | All booked debit and credit entries | Duplicate customer payment |
| Vouchers | Amounts, dates, counterparty, and accounting basis | Wrong account or amount |
| Reconciliation report | Open items, causes, and responsibility | Old discrepancy without action |
How to perform a bank reconciliation step by step
1. Select the reconciliation period and reconcile the starting balance
Use a clearly defined period, such as September. Check that the closing balance of the previous period matches the opening balance of the current period. The bank account and the accounting account must refer to the same actual account.
2. Retrieve bank statement and general ledger
Export all bank transactions and a general ledger extract for the bank account. Check that the statement covers the entire period and that no accounts, currencies, or date ranges have been mixed up.
3. Match deposits and withdrawals
Compare amounts, transaction dates, references, and counterparties. Mark each matched item. Examine customer payments, supplier payments, interest, bank fees, and manual transfers separately if necessary.
4. Identify remaining discrepancies
List items that appear only in the bank or only in the bookkeeping. A payment booked before it has cleared the bank may be a timing difference. An actual bank fee missing from the general ledger may require booking. The difference is only determined once the underlying material has been checked.
5. Investigate the cause before booking a correction
Trace the amount to an invoice, voucher, receipt, or bank event. Do not create an unspecified counter-entry just to make two balances equal. When correcting an accounting entry, it must be possible to track when and by whom the correction was made.
6. Document the reconciliation
Save the period, account, opening and closing balance, number of unmatched transactions, cause, action, responsible person, and date. Include references to vouchers. Follow up on open items in the next reconciliation.
7. Approve and archive
If the company has the resources, have another person review major discrepancies. Preserve relevant accounting information according to applicable archiving rules and internal routines.
Calculation example: a discrepancy of 2,500 kronor
Assume the bank statement shows 103,780 SEK but the bank account in the general ledger shows 106,280 SEK for the same reconciliation date. The bank thus shows 2,500 SEK less than the bookkeeping.
A payment of 2,500 SEK is present in the statement but missing from the general ledger. You check the payment documentation and which liability or cost the payment pertains to before booking it correctly. After correct handling, and provided there are no other discrepancies, the balances should be reconcilable. The example is simplified and does not constitute a general accounting recommendation.
Checklist before you sign the reconciliation
- The bank account, currency, and period are the same in both sets of documentation.
- The opening balance is reconciled against the previous period.
- Every bank event has been reviewed against the general ledger.
- Duplicates, fees, interest, and transfers have been checked.
- Open discrepancies have a documented cause and responsible person.
- Any corrections are traceable to a voucher.
- Reconciliation date and reviewer are indicated.
Common mistakes during account reconciliation
- Wrong comparison date: The bank’s balance and the general ledger’s balance are taken from different points in time.
- Discrepancy is booked away without investigation: The error is hidden instead of being resolved.
- Unmatched items are forgotten: An old discrepancy remains month after month.
- Multiple bank accounts mixed up: Transactions are matched against the wrong accounting account.
- Lack of traceability in the reconciliation: It is not possible to see what was reviewed and by whom.
Common questions about bank reconciliation
How often should the bank account be reconciled?
Continuously and according to fixed routines. The interval depends on factors such as the number of transactions and the company’s operations. Monthly bank reconciliation is a practical routine for many, but not a universal statutory monthly deadline.
What is the difference between bank reconciliation and account reconciliation?
Bank reconciliation refers to the company’s bank account. Account reconciliation is broader and can also apply to, for example, accounts receivable, accounts payable, and other balance sheet accounts.
Can I do the bank reconciliation in Excel?
Yes, Excel can be used for a matching list, a register of discrepancies, and documentation. The underlying bookkeeping, vouchers, and corrections must still be handled correctly in the company’s accounting process.
What do I do if the bank and the bookkeeping still do not match?
Keep the discrepancy as an open item with a documented investigation and a responsible person. Check previous periods, bank fees, incorrect dates, duplicate bookings, and whether transactions are missing. Seek help from an accounting consultant if necessary.
Related guides and tools
Also read about liquidity budgets and cash flow forecasting, authorization procedures and invoice control, and income budgets and follow-up. Also see the Template Store's finance templates.
Work in a structured way with a reconciliation template
To track transactions, note discrepancies, and sign off on the control, you can use our editable bank reconciliation template in Excel, Word, and PDF.
See bank reconciliation and account reconciliation – template package →
Sources and legal context
- Swedish Tax Agency: Reconciliations and corrections (legal guidance, 2026)
- Bookkeeping Act (1999:1078), specifically chapters 4–5
- Verksamt.se: Examples of bookkeeping
Last fact-checked: October 13, 2026. The information is general and does not replace individual accounting support or an assessment of the company’s specific circumstances.
