Bank Reconciliation

Reconciling means comparing what's in NP Ledger to what your bank says, then fixing any differences. It's how you make sure your books are accurate.

Your bank statement is the source of truth for how much money you actually have. If your books in NP Ledger don't match your bank, something was missed — a transaction wasn't recorded, a deposit hasn't cleared, or a payment was entered twice. Reconciling catches these problems before they compound.

• At least one bank account set up in NP Ledger (see Adding Your Bank Accounts)
• Your most recent bank statement (paper or digital — you'll need the ending balance and statement date)
• Transactions for the statement period already recorded in NP Ledger

Starting a reconciliation

1. Go to Bank & Cash (in the sidebar).
2. Click "Reconcile" next to the bank account you want to reconcile.
3. Select the bank account if not already chosen.
4. Enter the statement date from your bank statement.
5. Enter the statement ending balance — the final balance shown on your bank statement.
6. If this is your first reconciliation, enter the beginning balance — the ending balance from your last verified bank statement before you started using NP Ledger.
7. Click "Start Reconciliation."

Importing your bank statement

1. Click the "Import" button at the top of the reconciliation page.
2. Choose your import format:
3. CSV — generic bank statement download
4. OFX / QFX / QBO — structured bank export (if your bank offers it, this gives the best auto-matching)
5. PayPal — PayPal activity download
6. Venmo — Venmo transaction history
7. Mercury — direct Mercury API connection
8. Stripe — Stripe balance transactions
9. Upload the file (or connect to the API for Mercury/Stripe).

Tip: If you bank with Mercury, you can set up a bank feed to import transactions automatically — no file download or manual import step needed. 4. NP Ledger matches imported transactions to existing records automatically where possible.

Matching transactions

1. Review the transaction list. Matched items show a checkmark. Unmatched items need your attention.
2. For each unmatched transaction, either:
3. Check the box to mark it as matched (if you can see it corresponds to an existing NP Ledger entry)
4. Leave it unchecked if it represents a transaction not yet in your books
5. Use the filter and sort controls to find specific transactions:
6. Filter by description text
7. Sort by date or amount
8. Use "Select All" or "Deselect All" for batch operations.

Adding adjusting entries

If the balance still doesn't match after matching all transactions, you may need an adjusting entry — a transaction you add to account for the difference.

1. Click "Add Adjustment."
2. Enter the adjusting entry details — date, amount, account, and description.
3. Common adjustments: bank fees not yet recorded, interest earned, or transactions you missed.

Completing the reconciliation

1. When the difference shows zero (or you've accounted for all outstanding items), click "Complete Reconciliation."
2. NP Ledger saves the reconciliation and records the reconciliation date on the bank account. Matched transactions are marked as reconciled.
3. You can view the reconciliation report (on-screen, CSV, or PDF) for your records.

Important: Completing a reconciliation protects matched transactions from being voided. Make sure all matches are correct before completing.

• The difference between your books and the bank statement is zero (or accounted for)
• The Bank & Cash page shows the reconciliation date next to the account
• Any adjusting entries you created appear in your transaction list

• Entering the wrong statement ending balance — Double-check the number from your bank statement. A typo here means reconciliation will never balance.
• Reconciling with unrecorded transactions — If you have un-entered deposits or payments, record them first (via Quick Entry or import) before starting reconciliation.
• Skipping months — Reconcile monthly. Letting it pile up makes finding discrepancies much harder.
• Confusing bank balance with book balance — Your NP Ledger balance includes all recorded transactions, even those that haven't cleared the bank yet. Outstanding checks and pending deposits explain most differences.

Accountant note: Monthly reconciliation is a core internal control required by most nonprofit audit standards. The reconciliation report provides documentation for your annual audit and demonstrates fiduciary responsibility to your board.