How to Review and Approve Bank Reconciliation Results Effectively

Bank reconciliation doesn’t end when transactions are matched.

It ends when someone reviews the results and is confident enough to say:
“Yes—these numbers can be trusted.”

For many SMEs, this review and approval step is informal, rushed, or skipped entirely. Not because people don’t care—but because it’s unclear what should be reviewed and how deep the review should go.

Effective review isn’t about redoing the work.
It’s about knowing where to look, what questions to ask, and when to approve.

Why Review and Approval Matter

Bank reconciliation answers one question:

Do our records match what actually happened at the bank?

Review and approval answer a deeper one:

Do we understand why they match—and are we comfortable with the remaining differences?

Without review:

• Forced matches go unnoticed
• Timing differences are misunderstood
• Errors surface too late
• Confidence in reports erodes

Approval isn’t a formality.
It’s a control.

Who Should Review and Approve Reconciliation Results?

In SMEs, roles may overlap—but responsibilities should still be clear.

• Preparer: runs reconciliation and documents explanations
• Reviewer: checks logic, completeness, and reasonableness
• Approver: confirms overall confidence and accountability

In very small teams, one person may wear two hats—but review and approval should never be invisible.

What “Effective Review” Actually Means

Effective review does not mean:

• Checking every transaction
• Repeating the reconciliation
• Auditing line by line

It means focusing attention where risk and judgment live.

Step-by-Step: How to Review Bank Reconciliation Results

Step 1: Confirm Scope and Completeness

Start with the basics.

Ask:

• Are all bank accounts reconciled?
• Is the correct period covered?
• Are bank statements or feeds complete?

If scope is wrong, everything else is noise.

Step 2: Review Unmatched and Outstanding Items

This is the most important part of review.

Focus on:

• Unmatched transactions
• Long-outstanding items
• Items carried forward from prior periods

For each, check:

• Is the explanation clear?
• Is the reason reasonable?
• Is there an expected resolution timeframe?

Unmatched items are not failures—but unexplained ones are red flags.

Step 3: Pay Attention to Manual Adjustments and Overrides

Manual intervention deserves scrutiny.

Review:

• Adjusting entries
• Overrides of automatic matches
• Corrections made to “make it balance”

Ask:

• Why was this necessary?
• Is the adjustment documented?
• Does it preserve an audit trail?

Good systems surface these clearly. Poor ones hide them.

Step 4: Assess Reasonableness of the Ending Balance

Step back from the details.

Ask:

• Does the ending bank balance make sense given recent activity?
• Does it align with expectations and cash flow trends?

This high-level check often catches issues that detailed reviews miss.

Step 5: Check for Consistency Across Periods

Look for patterns.

• Are the same types of issues recurring?
• Are timing differences resolving as expected?
• Are balances becoming easier—or harder—to reconcile?

Consistency builds trust.
Deterioration signals process issues.

Step 6: Confirm Documentation and Sign-Off

Effective approval should be explicit.

Best practice:

• Reviewer documents key observations
• Approver confirms review and acceptance
• Sign-off is dated and traceable

This matters for audits, external advisors, and internal accountability.

What Approvers (Founders / Managers) Should Focus On

Approvers don’t need accounting depth—but they do need clarity.

Key questions to ask:

• Are there any unresolved or unusual items?
• Are cash balances reliable for decision-making?
• Did anything require escalation this period?

Approval is about confidence, not mechanics.

How Automation Improves Review Quality

Automation doesn’t remove the need for review—it makes review better.

AI-assisted reconciliation systems:

• Handle routine matching
• Highlight exceptions clearly
• Preserve audit trails
• Surface risk areas automatically

At ccMonet, reconciliation is designed so reviewers spend time on judgment, not mechanical checking—making approval faster and more meaningful.

Common Review and Approval Mistakes to Avoid

• Approving just because balances match
• Ignoring unmatched items because they’re “small”
• Skipping review due to time pressure
• Not documenting approval
• Letting the same person prepare, review, and approve without oversight

These shortcuts don’t save time—they defer risk.

Practical Tips for SMEs

• Review exceptions, not everything

Focus where judgment is required.

• Make review a routine, not an event

Consistency matters more than intensity.

• Keep approval lightweight but explicit

A clear sign-off beats silent assumption.

• Use systems that surface what matters

Visibility is the foundation of good review.

Solutions like ccMonet are built to support structured preparation, focused review, and confident approval.

Frequently Asked Questions (FAQ)

How detailed should reconciliation review be?

Detailed enough to understand unmatched items and adjustments—but not a full re-performance.

Can the same person prepare and approve reconciliation?

In very small teams, yes—but owner or manager oversight should still exist.

How often should reconciliation be reviewed and approved?

Typically monthly for formal approval, with more frequent exception review if reconciliation runs continuously.

How does ccMonet support review and approval?

ccMonet provides clear visibility into matches, exceptions, adjustments, and audit trails, enabling efficient review and confident approval.

Learn more at https://www.ccmonet.ai/.

Key Takeaways

• Reconciliation isn’t complete without review and approval
• Effective review focuses on exceptions and judgment
• Approval is about confidence, not checking boxes
• Automation improves visibility, not accountability

Final Thought

Good bank reconciliation builds accuracy.

Good review builds trust.

When review and approval are done thoughtfully, reconciliation becomes more than a task—it becomes a reliable foundation for decisions.

👉 Discover how ccMonet supports review-ready, approval-friendly bank reconciliation at https://www.ccmonet.ai/.

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