Bank Reconciliation

Bank reconciliation ensures that CEF Core's internal cash records match the bank's actual records. Discrepancies arise from timing differences (deposits in transit, outstanding checks) and occasionally from errors or unauthorized transactions. Regular reconciliation is a fundamental internal control for any financial institution.

CEF Core tracks reconciliation status in the cash.reconciliation table, which records the bank statement balance, the book balance, the reconciliation status, and the user who performed the reconciliation.

CEF Core integrates with Plaid to automatically import bank transactions, eliminating the need for manual statement uploads in most cases:

Automatic Import Schedule

Imported bank transactions are stored and compared against internal cash transactions. The system flags matches, partial matches, and unmatched items for review.

Follow these steps to reconcile an account for a given statement period:

1. Review the bank statement balance: Plaid imports the closing balance automatically. For manual reconciliation, enter the statement ending balance and date.
2. Match transactions: The system automatically matches internal transactions to bank transactions using three criteria:
   • Amount: Exact match between the internal transaction amount and the bank transaction amount.
   • Date proximity: Transaction dates within 1-3 business days of each other.
   • Reference number: Check numbers, wire references, or ACH trace IDs compared for positive identification.
3. Review unmatched items: Items that cannot be auto-matched appear for manual review. Common reasons include timing differences, bank fees not yet recorded, or data entry discrepancies.
4. Identify outstanding items: Categorize unreconciled differences as deposits in transit or outstanding checks/payments.
5. Record adjustments: If bank fees, interest, or other items appear on the bank statement but not in CEF Core, record them as new cash transactions via POST /api/v1/cash/transactions.
6. Finalize reconciliation: When the adjusted book balance equals the adjusted bank balance, mark the reconciliation as complete.

View Reconciliation History

GET /api/v1/cash/reconciliation?accountId={uuid}

Response:
{
  "reconciliations": [
    {
      "account_id": "uuid",
      "reconciliation_date": "2026-02-28",
      "bank_balance": "1245890.50",
      "book_balance": "1245890.50",
      "status": "RECONCILED",
      "reconciled_by": "user-uuid",
      "created_at": "2026-03-05T10:15:00Z"
    },
    {
      "account_id": "uuid",
      "reconciliation_date": "2026-03-31",
      "bank_balance": "1312450.75",
      "book_balance": "1298720.25",
      "status": "IN_PROGRESS",
      "reconciled_by": null,
      "created_at": "2026-04-02T09:00:00Z"
    }
  ],
  "count": 2
}

Reconciliation Status Values

Outstanding items are transactions recorded in CEF Core that have not yet appeared on the bank statement. These are normal timing differences:

The standard bank reconciliation formula used by CEF Core:

• ✓Reconcile monthly at minimum: Complete each month's reconciliation within 5 business days of receiving the bank statement. CEF Core's Plaid integration provides statements automatically.
• ✓Investigate stale outstanding items: Checks outstanding over 90 days and deposits in transit over 5 business days require investigation.
• ✓Record bank fees promptly: When Plaid imports bank service charges or fees, create a corresponding cash transaction immediately to keep the book balance current.
• ✓Use reference numbers consistently: Always include check numbers, wire references, or ACH trace IDs on disbursements to enable automatic matching.
• ✓Segregation of duties: The person reconciling the account should be different from the person who authorized the disbursements during that period.

Common Issues: