Reconciling your bank account is one of the most important bookkeeping tasks in the entire system.

Unfortunately, it is also one of the most commonly skipped.

When reconciliation is ignored:

•bank balances stop matching statements

•General Ledger totals become confusing

•outstanding checks accumulate incorrectly

•operators begin to distrust the numbers on the screen

Most “the numbers don’t match” support calls are ultimately caused by:

👉 unreconciled bank activity.

For that reason:

⚠️ reconciliation should be performed every time a bank statement is received.

What Reconciliation Does

As checks clear your bank:

•the bank removes the funds

•the checks appear on your statement

•the transactions are no longer considered “outstanding”

The Reconciliation process tells MLS 2026:

👉 which checks have officially cleared the bank.

Once reconciled:

•outstanding totals are reduced

•cleared checks move to history

•balances become accurate

•reports become trustworthy

Accessing Reconciliation

From the:

•Bank Menu

select:

•Reconciliation

MLS 2026 will display:

👉 all outstanding checks that have not yet been reconciled.

Reconciling Checks

The screen displays:

•check numbers

•dates

•amounts

•payees

•outstanding activity

Use:

•the arrow keys

•the mouse

to move through the list.

To mark a check as cleared:

👉 right-click the check entry.

The system will flag it as reconciled.

Repeat this process for all checks that appear on the bank statement.

Processing the Reconciliation

When all cleared checks have been marked:

Select:

•Exit

MLS 2026 will then:

•process the reconciliation

•update balances

•reduce outstanding totals

•move cleared checks into history

No additional processing is required.

Why Reconciliation Matters

Without reconciliation:

•outstanding check totals become inflated

•balances appear incorrect

•the check register becomes misleading

•the General Ledger may appear inaccurate

•operators lose confidence in the accounting system

Reconciling regularly ensures:

•accurate balances

•reliable reports

•correct cash flow analysis

•easier troubleshooting

Common Symptoms of Missing Reconciliation

If users report:

•“The bank balance looks wrong”

•“The G/L doesn’t match the bank”

•“Outstanding checks are too high”

•“Old checks still appear”

•“The statement balance doesn’t match MLS 2026”

the first thing to verify is:

👉 whether reconciliation has been performed recently.

Recommended Procedure

Best practice is:

1.Receive bank statement

2.Open Reconciliation

3.Mark all cleared checks

4.Process reconciliation

5.Verify balances

6.File statement for records

This process should normally be done:

•monthly

•whenever statements are received

Important Operational Notes

•Only reconcile checks that actually cleared the bank

•Reconciliation moves cleared checks to history

•Outstanding checks reduce available cash

•Old unreconciled items should be investigated

•Reconciliation improves report accuracy dramatically

Troubleshooting Tip

If balances still do not match after reconciliation:

Check for:

•missing deposits

•duplicate postings

•incorrect check amounts

•unreconciled service charges

•unreconciled interest

•manual entries posted to wrong accounts

Also review:

•General Ledger Analysis

•Bank Transaction Reports

•Outstanding Check Listings

Recommended Companion Sections

This section works closely with:

•Writing Checks

•Posting Deposits and Charges

•Bank Reports