Step 5, Bank reconciliation (Compute · deterministic → you confirm)

Layer: the rec is arithmetic (deterministic). The AI can lay it out and flag unexplained differences; you confirm the reconciling items are legitimate.

Goal: reconcile the bank ending balance to your book cash balance, and prove the difference is fully explained by timing items.

Inputs: the December statement ending balance ($36,799.25) + your book cash.

The realistic wrinkle (timing differences)

Because we built the books straight from the statements, book cash would tie to the bank perfectly, which never happens in real life. So here are two December items your books recorded that haven't hit the bank yet (this is what a real rec untangles):

Deposit in transit: a $2,300.00 customer deposit recorded 12/31, posts to the bank 1/2.
Outstanding check: Check 1042 for $1,150.00 (a 12/29 supply purchase), not yet cleared.

So your book cash = $37,949.25 ( $36,799.25 + $2,300.00 − $1,150.00 ).

Prompt (paste into Claude)

Build a bank reconciliation as of 12/31/2025.
- Bank statement ending balance: $36,799.25
- Add: deposits in transit (in our books, not yet on the bank)
- Subtract: outstanding checks (in our books, not yet cleared)
- The result (adjusted bank balance) should equal our book cash balance.
Reconciling items:
  • Deposit in transit 12/31: $2,300.00
  • Outstanding check 1042: $1,150.00
Our book cash balance: $37,949.25
Lay it out as a standard rec and state whether it ties. Flag any unexplained difference.

Verify ✅

Adjusted bank balance = book cash: $36,799.25 + $2,300.00 − $1,150.00 = $37,949.25. Ties. ✓
Every reconciling item is real, you confirm the deposit and the outstanding check exist (in a real rec, an item you can't explain is the whole point of doing this).
A rec that doesn't tie is not done, never force it with a plug.

You've now completed the cycle: statements → redact → extract → categorize → workpaper → trial balance → bank rec, with the AI doing the legwork and you owning every judgment and the sign-off.