# Reconcile before trusting the report

First complete the record using this book’s fictional case, marking each field as known, assumed or unresolved. Explain one conclusion using the supporting amounts or documents. Then compare your reasoning with the discussion below. For personal use, keep private financial details in secure records; this worksheet needs no account numbers or credentials.

| Record field | Your observation |
|---|---|
| Statement period and opening cash |  |
| Invoice / sale record |  |
| Gross processor receipts |  |
| Fees and unsettled payments |  |
| Expense evidence and purpose |  |
| Owner funding and withdrawals |  |
| Internal transfers |  |
| Unmatched items and explanations |  |
| Ending cash by account |  |
| Profit and unresolved close questions |  |

### Questions worth checking

The bank receives $970 from a $1,000 sale with a $30 processor fee. Recording $970 of revenue and also $30 of expense understates profit. Record the gross sale and the fee once each, then match the net deposit.

An owner transfers $150 from checking to savings. Both accounts belong to the same simple business example. Combined cash and profit remain unchanged. If the software records new income, correct the category rather than accepting the automatic suggestion.

A $10 reconciliation difference could be a missing fee, duplicate entry or timing item. The amount alone does not tell you the cause. Locate the evidence before posting a correction. Preserve the explanation so next month's reviewer does not have to solve the same mystery again.