Reconciliation

A bank reconciliation is a procedure used by people or businesses to verify that their own financial records match with their bank account. These records can be found in sources like bank statements or accounting software. In order to preserve correct financial records, bank reconciliation is used to find any differences between the two sets of information, such as mistakes, missing transactions, or fraudulent activities, and to address them.

On your home page you will see tabs titled as your bank accounts. On each one you will see an uppercase R, either the color grey or red. Grey meaning that the bank account is reconciled and red meaning it still needs to be.

Starting the Reconciliation Process

Clicking on the “R” will start the reconciliation process. Now, a page showing the previous date and balance since it was last reconciled appears. Checking accounts will show as a positive number and credit cards will show as negative number since it is money owed.

From here you will look at your bank statement for the specific date you are trying to reconcile. The ending date on Hedgi will correspond to the closing date on your statement. The ending balance on Hedgi will correspond to the new balance shown on your statement. Once you have inputted that date and balance, you will be able to click on start reconciling.

This will bring you to a new screen where you will look in the upper right-hand corner for the difference in the statement ending balance and current balance of your account. To successfully reconcile, you are looking for the difference to be 0. If that is the case, you can go ahead and click “Finish” where your red “R” will now change into a grey “R” meaning a successful reconciliation.

But if that difference is not 0, that means there is an error in your transactions. One way to solve this is adding a transaction that may be missing. Another way is deleting a transaction that could’ve been duplicated. You can go back and repeat the process after adjusting transactions until you get a successful reconciliation.

By reconciling bank accounts regularly, individuals and businesses can ensure that their financial records are accurate and up-to-date. This can help them make informed financial decisions and avoid costly errors.