Capability template for finance and accounting
Bank reconciliation preparation
Before the month is signed off, your bookkeeper holds one bank reconciliation for one account: every statement line matched to the books or explained, every open item aged, a proof that the two balances agree, and the entries still to make. Nothing is posted until a person approves.
The outcome
A bank reconciliation is where the books meet an outside record they cannot argue with. Your bookkeeper starts the review with the matching already done: each statement line paired with its entry in the books, or set apart with the reason it has no partner.
What is left is short and specific. Checks written and not yet cashed, deposits not yet on the statement, fees and interest the books do not show yet, an amount keyed wrongly, a supplier who seems to have been paid twice. Each one carries its age, so the deposit that should have reached the bank a week ago stands out from the one made yesterday.
The sheet ends with a proof: the statement balance and the ledger balance, each adjusted for the open items, side by side. Either they agree to the cent or the gap is shown in plain figures. Nothing is ever added to make it come out at zero.
The capability prepares and checks. Your bookkeeper decides how each entry is coded, a reviewer signs, and a person posts the entries in the accounting system.
Who starts the work, and when
The bookkeeper or staff accountant starts it each month, as soon as the bank statement for the month is available and the books are up to date for the period. Many businesses run it again mid-month for a busy account. One run covers one bank account for one statement period.
The controller, the owner or the outside accountant reviews the result and signs it off. Whoever knows the answer to each open question, such as the person who banks the shop's cash, gets that question by name.
What they supply
- The bank statement export for the account and the month, with the opening and closing balances from the statement.
- The ledger export: the same account's register from the accounting system for the same dates, with its opening and closing balances.
- Last month's open items: the checks, deposits and other items the previous reconciliation left outstanding.
- A few settings: who runs it, who reviews it, the bank's working days, and how wide a date gap still counts as a match.
Two files and a short list are enough. It needs no connection to your bank or your accounting system, and it never asks for a password or a login code.
What comes out
One reconciliation sheet, in a fixed order:
- The result. Whether the proof agrees, how many items are open and how many need attention.
- The balances. Each export added up and checked against its own opening and closing figures, so nothing is matched from a file that is missing rows.
- The proof. Both adjusted balances and the difference between them.
- What matched, pair by pair, with each side's own wording and how many days apart they were.
- What is open, by kind: checks not yet cashed, deposits in transit, items on the statement that are not in the books, amounts that differ, and lines that could belong to more than one partner.
- Last month's items, each one cleared with its date or still open and older.
- Ageing and flags, then the entries to prepare for approval, the questions for each person, and a sign-off line for the reviewer.
A good sheet lets the reviewer trace every figure to a row in one of the two exports and see every open item with its reason.
An invented example
Illustrative example with invented data. The business, the suppliers, the bank, every row and every figure below are invented. Tallow Street Bakery is an invented bakery with two shops and a wholesale round to local cafés. Its bookkeeper reconciles the operating account for October 2026, and its outside accountant reviews and signs. People are referred to by role and suppliers by letter.
The inputs come first, in full, so the template can be run on them. The reconciliation sheet follows.
The inputs
1. Settings
Account: operating account, ending 4417.
Statement period: 1 to 31 October 2026.
Sheet prepared: Tuesday 3 November 2026.
Runs it: bookkeeper. Reviews and signs: outside accountant.
Codes and posts entries, marks items cleared: bookkeeper, after the
outside accountant approves.
Answers questions: Shop 2 manager for Shop 2 cash takings; bookkeeper for
supplier payments, checks and returned items; outside accountant for
what happens to an old payment; owner for anything unexplained.
Bank's business days: Monday to Friday. No bank holidays in October.
(No date window, deposit check or old-payment limit given.)
2. Bank statement export, operating account ending 4417
Opening balance 1 October 2026: 18,450.00
Closing balance 31 October 2026: 25,511.08
Date,Description,Reference,Money out,Money in
2026-10-01,DEPOSIT,,,1240.00
2026-10-02,CARD SETTLEMENT MERCHANT 0091,,,3412.55
2026-10-05,ACH DEBIT SUPPLIER A FLOUR,,2180.00,
2026-10-06,CHECK 1182,1182,860.00,
2026-10-09,CARD SETTLEMENT MERCHANT 0091,,,4105.20
2026-10-12,PAYROLL SVC DD,,9640.00,
2026-10-14,CHECK 1191,1191,445.00,
2026-10-16,CARD SETTLEMENT MERCHANT 0091,,,3987.40
2026-10-19,ACH DEBIT SUPPLIER B DAIRY,,1326.75,
2026-10-20,ACH DEBIT SUPPLIER B DAIRY,,1326.75,
2026-10-23,CARD SETTLEMENT MERCHANT 0091,,,4230.10
2026-10-26,RETURNED DEPOSITED ITEM,RI0926,380.00,
2026-10-27,DEPOSIT,,,2050.00
2026-10-30,CARD SETTLEMENT MERCHANT 0091,,,4512.85
2026-10-30,MONTHLY SERVICE FEE,,35.00,
2026-10-30,MERCHANT DISCOUNT OCT,,287.64,
2026-10-30,INTEREST PAID,,,4.12
3. Ledger export, operating account
Opening balance 1 October 2026: 18,617.60
Closing balance 31 October 2026: 28,441.95
Date,Type,Number,Name,Memo,Amount
2026-10-01,Deposit,D-1001,Merchant card settlement,Card takings 24 to 30 Sep,3412.55
2026-10-01,Bill payment,ACH-1001,Supplier A (flour),September flour,-2180.00
2026-10-08,Deposit,D-1008,Merchant card settlement,Card takings 1 to 7 Oct,4105.20
2026-10-09,Check,1191,Supplier D (produce),Produce week to 9 Oct,-454.00
2026-10-12,Payroll,PR-1012,Payroll service,Payroll 12 Oct,-9640.00
2026-10-15,Deposit,D-1015,Merchant card settlement,Card takings 8 to 14 Oct,3987.40
2026-10-19,Bill payment,ACH-1019,Supplier B (dairy),October dairy,-1326.75
2026-10-20,Check,1194,Supplier E (cleaning),Cleaning October,-318.00
2026-10-21,Deposit,D-1021,Cash takings Shop 2,Cash takings 12 to 18 Oct,920.00
2026-10-22,Deposit,D-1022,Merchant card settlement,Card takings 15 to 21 Oct,4230.10
2026-10-23,Deposit,D-1023,Wholesale receipts,Checks from cafés,2050.00
2026-10-28,Check,1195,Supplier C (equipment repair),Oven repair,-1150.00
2026-10-29,Deposit,D-1029,Merchant card settlement,Card takings 22 to 28 Oct,4512.85
2026-10-30,Deposit,D-1030,Wholesale receipts,Checks from cafés,1675.00
4. Open items from the September reconciliation
Date,Type,Number,Name,Amount
2026-08-18,Check,1176,Supplier F (packaging),-212.40
2026-09-24,Check,1182,Supplier C (equipment repair),-860.00
2026-09-30,Deposit,D-0930,Wholesale receipts,1240.00
The reconciliation sheet
BANK RECONCILIATION: operating account, ending 4417, 1 to 31 October 2026
For: outside accountant. Prepared by: bookkeeper on 3 November 2026.
Sources: bank statement export, 17 rows, 1 to 31 October 2026; ledger export, 14 rows; last month's open items, 3, from September 2026.
Settings used: date window 3 business days; deposit check 5 business days; old-payment limit 60 days; business days Monday to Friday. Defaults used: date window, deposit check, old-payment limit.
RESULT
Proof agrees: difference $0.00.
Open items: 13. Flagged: 2. Entries to prepare: 4.
BALANCES
Statement: opening $18,450.00 + money in $23,542.22 - money out $16,481.14 = $25,511.08. Closing balance on the statement $25,511.08: agrees.
Ledger: opening $18,617.60 + money in $24,893.10 - money out $15,068.75 = $28,441.95. Closing balance in the ledger $28,441.95: agrees.
PROOF
Statement closing balance $25,511.08
Add: ledger receipts the bank has not shown yet $2,595.00
Less: ledger payments the bank has not shown yet ($3,007.15)
Adjusted statement balance $25,098.93
Ledger closing balance $28,441.95
Add: bank receipts the ledger does not show $4.12
Less: bank payments the ledger does not show ($3,356.14)
Amount differences $9.00
Adjusted ledger balance $25,098.93
Difference $0.00
MATCHED: 10 pairs. Money in $23,538.10. Money out $12,680.00.
By reference: statement 6 Oct "CHECK 1182" $860.00 out = ledger 24 Sep 1182 "Supplier C (equipment repair)", carried.
By amount and date: statement 1 Oct "DEPOSIT" = ledger 30 Sep D-0930 "Wholesale receipts", carried, $1,240.00 in, 1 business day apart, description not compared.
By amount and date: statement 2 Oct "CARD SETTLEMENT MERCHANT 0091" = ledger 1 Oct D-1001 "Merchant card settlement", $3,412.55 in, 1 business day apart.
By amount and date: statement 5 Oct "ACH DEBIT SUPPLIER A FLOUR" = ledger 1 Oct ACH-1001 "Supplier A (flour)", $2,180.00 out, 2 business days apart.
By amount and date: statement 9 Oct "CARD SETTLEMENT MERCHANT 0091" = ledger 8 Oct D-1008 "Merchant card settlement", $4,105.20 in, 1 business day apart.
By amount and date: statement 12 Oct "PAYROLL SVC DD" = ledger 12 Oct PR-1012 "Payroll service", $9,640.00 out, 0 business days apart.
By amount and date: statement 16 Oct "CARD SETTLEMENT MERCHANT 0091" = ledger 15 Oct D-1015 "Merchant card settlement", $3,987.40 in, 1 business day apart.
By amount and date: statement 23 Oct "CARD SETTLEMENT MERCHANT 0091" = ledger 22 Oct D-1022 "Merchant card settlement", $4,230.10 in, 1 business day apart.
By amount and date: statement 27 Oct "DEPOSIT" = ledger 23 Oct D-1023 "Wholesale receipts", $2,050.00 in, 2 business days apart, description not compared.
By amount and date: statement 30 Oct "CARD SETTLEMENT MERCHANT 0091" = ledger 29 Oct D-1029 "Merchant card settlement", $4,512.85 in, 1 business day apart.
OUTSTANDING PAYMENTS
18 Aug 1176 "Supplier F (packaging)" $212.40 out, 74 days, carried. FLAG: old payment.
20 Oct 1194 "Supplier E (cleaning)" $318.00 out, 11 days.
28 Oct 1195 "Supplier C (equipment repair)" $1,150.00 out, 3 days.
DEPOSITS IN TRANSIT
21 Oct D-1021 "Cash takings Shop 2" $920.00 in, 10 days. FLAG: not on the statement after 7 business days.
30 Oct D-1030 "Wholesale receipts" $1,675.00 in, 1 day.
ON THE STATEMENT ONLY
26 Oct "RETURNED DEPOSITED ITEM" RI0926 $380.00 out, 5 days. Kind: returned item.
30 Oct "MONTHLY SERVICE FEE" $35.00 out, 1 day. Kind: fee.
30 Oct "MERCHANT DISCOUNT OCT" $287.64 out, 1 day. Kind: fee.
30 Oct "INTEREST PAID" $4.12 in, 1 day. Kind: interest.
AMOUNT DIFFERS
Reference 1191: statement 14 Oct $445.00 out; ledger 9 Oct 1191 "Supplier D (produce)" $454.00 out. Gap $9.00. 22 days. Two digits may be swapped.
NEEDS A PERSON TO PAIR
Statement 19 Oct "ACH DEBIT SUPPLIER B DAIRY" $1,326.75 out, 12 days. Candidates: ledger 19 Oct ACH-1019.
Statement 20 Oct "ACH DEBIT SUPPLIER B DAIRY" $1,326.75 out, 11 days. Candidates: ledger 19 Oct ACH-1019.
Ledger 19 Oct ACH-1019 "Supplier B (dairy)" $1,326.75 out, 12 days. Candidates: statement 19 Oct and statement 20 Oct.
CARRIED FROM LAST MONTH
18 Aug 1176 "Supplier F (packaging)" $212.40: still open, now 74 days.
24 Sep 1182 "Supplier C (equipment repair)" $860.00: cleared on 6 Oct.
30 Sep D-0930 "Wholesale receipts" $1,240.00: cleared on 1 Oct.
AGEING
Within 30 days: 12. 31 to 60 days: 0. Over 60 days: 1.
Flags: check 1176: old payment. Deposit D-1021: not on the statement after 7 business days.
ENTRIES TO PREPARE FOR APPROVAL
1. 26 Oct "RETURNED DEPOSITED ITEM" $380.00 out. Kind: returned item.
2. 30 Oct "MONTHLY SERVICE FEE" $35.00 out. Kind: fee.
3. 30 Oct "MERCHANT DISCOUNT OCT" $287.64 out. Kind: fee.
4. 30 Oct "INTEREST PAID" $4.12 in. Kind: interest.
Coding: chosen by bookkeeper. Posted by bookkeeper after outside accountant approves.
Waiting on an answer: check 1191 (gap $9.00); Supplier B debits of $1,326.75 on 19 and 20 Oct against one ledger payment.
QUESTIONS
For bookkeeper: check 1191 to Supplier D is $454.00 in the ledger on 9 Oct but cleared the bank at $445.00 on 14 Oct; which amount is written on the check?
For bookkeeper: the statement shows Supplier B debits of $1,326.75 on 19 Oct and again on 20 Oct, while the ledger has one payment of $1,326.75 on 19 Oct; was a second payment due, or was the account debited twice?
For Shop 2 manager: Shop 2 cash takings of $920.00, recorded on 21 Oct as D-1021, are not on the statement by 31 Oct; were they banked, and on what date?
For bookkeeper: the statement shows a returned deposited item of $380.00 on 26 Oct, reference RI0926; whose payment was returned?
For outside accountant: check 1176 to Supplier F for $212.40, written on 18 Aug, is still not cashed after 74 days; what should happen to it?
IF THE PROOF DOES NOT AGREE: WHERE TO LOOK
Not needed.
SIGN-OFF
Prepared by: bookkeeper, 3 November 2026.
Reviewed by: ____________________ Date: ____________
Prepared for review. Nothing has been posted, cleared, written off or sent.
How the figures trace: money in on the statement is the eight receipts, money out the nine payments. Ledger receipts the bank has not shown yet are the two deposits in transit ($920.00 + $1,675.00). Ledger payments the bank has not shown yet are the three outstanding checks and the unpaired Supplier B ledger payment ($212.40 + $318.00 + $1,150.00 + $1,326.75). Bank payments the ledger does not show are the returned item, the two fees and both unpaired Supplier B debits ($380.00 + $35.00 + $287.64 + $1,326.75 + $1,326.75). The amount difference is the statement's $445.00 out less the ledger's $454.00 out, which adds $9.00 to the ledger side. The thirteen open items are three outstanding payments, two deposits in transit, four statement items, one amount difference and three rows waiting to be paired.
Where it fits
- Finance and accounting, which owns the reconciliation and the close it feeds.
- Professional services, where client payments arrive by every route and each one has to land against the right deposit.
- E-commerce and retail, where card settlements, fees and refunds fill the statement every week.
- Hospitality, where cash takings, card batches and supplier debits all run through one account.
- Construction, where large supplier payments and progress receipts make a single keying error expensive.
- Established businesses, where the reconciliation has always lived with one careful person and should be repeatable by anyone.
What has to change for your company
- Your exports. The column names your bank and your accounting system produce, so the template reads them as they come. If a heading does not match, it stops and asks rather than guessing.
- Your matching window. How many business days apart two dates may be and still count as the same transaction.
- Your limits. How many business days a deposit may take to reach the statement before it is flagged, and how old an uncashed check may get before someone decides what to do with it.
- Your roles. Who prepares, who reviews and signs, who codes and posts entries, and who answers questions about cash, cards and suppliers.
- Your platform. It runs in ChatGPT, Claude, Copilot or Gemini, from files you supply. Decide which exports the assistant may read and where signed reconciliations are kept.
What has been checked
Fully Powered AI wrote this capability template. It was editorially reviewed on 9 November 2026. It was tried on its invented example on 9 November 2026 in one run; the record is published with it, and lists the small edits made afterward that have not been run again. That run did not reach the stop conditions or the path where the proof does not agree. It has not yet been tested in a client environment. It has not yet been tested as a packaged version in ChatGPT, Claude, Copilot or Gemini.
Testing in your environment means running it on two or three past months your bookkeeper has already reconciled by hand, plus hard cases written in advance, each with the expected result: an export with a missing row, a check entered at the wrong amount, a supplier debited twice, a deposit that never reached the bank, a heading the template does not recognize. The reviewer compares every figure with the signed reconciliation before anyone relies on it. Pilot acceptance-test preparation sets those cases up, and what we test before we call an AI workflow ready describes the record we keep.
The full capability template
Everything above is the outline. The complete capability template is the working version: the roles, the inputs, the procedure, the exceptions and stop conditions, the output format, the reviewer checklist, the acceptance tests, the instructions for an AI assistant and what to customize for your company. It comes with a download and the link to its folder in Fully Powered’s public repository.
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Next step
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