Understand Cleared Transactions Before Reconciling
A cleared transaction has appeared in the bank or card provider’s posted activity. That does not necessarily mean the transaction has completed a formal reconciliation in your bookkeeping software. Clearing identifies movement at the financial institution, while reconciliation checks a complete statement period against the books.
Separate pending, cleared and reconciled
A pending card purchase may change amount or disappear before it posts. A cleared purchase has posted, but the software’s status labels can vary. A reconciled entry has generally been included in a completed statement comparison. Understanding these distinctions helps avoid adding a purchase twice when a pending entry and a final posted entry both appear.
Match the transaction before adding another one
If a bill payment or customer receipt already exists in the books, a bank feed item should often match that record. Adding a new expense or new sale can duplicate the activity. Check the amount, date, account and payment reference, allowing for legitimate timing differences between when the business entered the transaction and when the bank processed it.
Investigate items that remain outstanding
An uncleared check may still be waiting for deposit, but an old outstanding entry may reflect a duplicate, a voided payment or the wrong bank account. Review it with supporting records rather than marking it cleared to force a balance. IRS reconciliation guidance emphasizes accounting for outstanding checks, deposits and bank charges so the adjusted records agree for an understandable reason.