Bank reconciliation

What it means

Bank reconciliation is the routine check that the cash balance in your accounting records matches the balance on your bank statement. Differences are explained by timing — such as payments still clearing — or by errors and missed entries that need correcting.

Regular reconciliation gives you confidence that your books reflect reality and that recorded customer payments have actually landed.

Why it matters for receivables

Reconciling promptly tells you which invoices have truly been paid and which are still outstanding, so you chase the right accounts. Unmatched receipts are a common source of confusion. Issuing invoices with clear references through Merion invoicing makes incoming payments easier to match during reconciliation. See also general ledger.