What does it mean?
Bank reconciliation is the process of explaining differences between bank records and the association’s accounting records for the same date. Timing items such as outstanding checks may be legitimate; missing fees, duplicate entries, or incorrect amounts need investigation. Simply importing transactions does not complete this review.
ILLUSTRATIVE COMMUNITY EXAMPLE
What it can look like
A fictional ledger includes a check that has not cleared, while the bank shows a service fee missing from the ledger. The reviewer accounts for both items and documents the adjusted balances.
Why your board should care
A completed reconciliation makes cash reports more dependable and gives the next reviewer an audit trail.
Keep the distinction clear
Do not force a balancing entry just to make totals match without understanding the difference.
Sources & scope
Sources consulted . These references support the explanation’s background; the examples and board questions are original editorial illustrations.
- IRS Publication 583: Keeping Records ↗
December 2024 publication. General bookkeeping and reconciliation background, not association-specific legal requirements.
General educational explanations for HOA, POA, and condominium boards. Terms and procedures vary by state and governing documents. Examples are fictional. For a specific legal, tax, accounting, or property decision, consult a qualified adviser.
Prepared with AI assistance and source checking. Not represented as an attorney or accountant review.