The Problem
"Why doesn't my balance match my bank?" Every budget hits this moment. A transaction got imported twice. One never got imported. A charge posted on the 1st that you thought was the 31st. If you let it slide, you stop trusting the numbers, and a budget you do not trust is a budget you stop using.
Reconciliation is the monthly habit that catches the difference and pins it down. It takes about ten minutes, and it is what makes the rest of the system safe to rely on.
How Reconciliation Works Here
Every account balance is anchored to a statement (Module 3). When your next statement arrives, you add it, and the app does the comparison for you:
Prior closing balance
+ inflows during the period
− outflows during the period
= expected closing balance
You type the closing balance from the bank. The app shows the expected closing balance from your transactions, and the delta between them. A zero delta means the app and the bank agree on every dollar in that period. A non-zero delta is the size of the mistake, which is usually enough to find it.
Try It: Reconcile a Statement
Practice on the demo checking account. You added its first statement in Module 3, so the app has a prior closing balance to work from.
- Navigate: Accounts
- Click: "Primary Checking"
- Click: "Add Statement"
- Type: Statement Date — the last day of this month
- Type: Closing Balance — the closing balance from your bank statement (with demo data, any figure works)
- Verify: the Reconciliation section shows Prior Closing Balance, Inflows, Outflows, Expected Closing, and Delta
- Verify: the delta reads "Balanced" or "Off by" an amount
- Click: "Create"
- Verify: the new statement appears in the account's statement list
When It's Off
The Reconciliation section lists every transaction in the statement period, and a second tab lists transactions dated after it. Three fixes cover almost every case:
- A transaction is in the wrong period. Your bank posted it on the 1st; you have it on the 31st. Select the ones that belong and use "Move unselected items to next period," or pull a later one in with "Move selected items to this period." The delta updates as you go.
- A transaction is missing or doubled. Search the transaction list for the delta amount. A missing one you add. A doubled one you delete.
- It is a few cents you cannot find. Use "Create Balance Adjustment" to post a small reconciliation transaction and close the gap. Use this sparingly. It is a shrug, not a fix.
When the delta is zero, save. The new statement becomes the anchor for next month.
The Rhythm That Keeps It Running
You now have every piece of the system. What keeps it alive is a rhythm, not willpower.
Daily (2 minutes). Check new transactions, glance at the forecast, fix any tag. That is Module 7.
Weekly (10 minutes). Import the week's CSV. Scan what came in. Add a TagMatcher rule for any new merchant. Move money between lines if something is off.
Monthly (30 minutes). Add the statement and reconcile. Read Insights: top five categories, net income versus expenses, net worth. Build next month's draft from averages and adjust it to zero.
That is the whole job. Import, tag, budget, reconcile, review. When life changes, the budget changes: a raise goes to a savings line, a new bill gets a scheduled transaction, a paid-off loan frees up a line to reassign. The budget is a tool you adjust, not a rule you obey.
What Comes Next
Look at what you have built. Your transactions arrive on your terms. Your rules sort them. Your budget balances to zero every month, and your statements prove the numbers are real. That is the core loop, running the way you want, with you steering.
One module remains, and it is the one this whole system has been building toward. Every month you spend less than you earn, the gap goes somewhere. Module 10 turns that gap into a target: your Financial Independence Number, and a plan for reaching it.
Key Takeaway: Reconcile every statement. Enter the closing balance, read the delta, and fix what it points to. Then keep the rhythm: two minutes daily, ten weekly, thirty monthly. A budget you can prove is a budget you keep.
Check Your Understanding
What does a zero delta in the Reconciliation section mean?
Answer: The expected closing balance from your transactions matches the closing balance on your bank statement. The app and the bank agree on every dollar in that period.
Your delta is exactly $45.00. What is the most likely cause?
Answer: One transaction for $45.00 is either missing or entered twice. Search the transactions for that amount.
When should you use "Create Balance Adjustment"?
Answer: Only for a small difference you cannot track down after checking for moved, missing, or duplicate transactions. It closes the gap. It does not find the cause.
What are the three parts of the maintenance rhythm?
Answer: Daily: check transactions and the forecast. Weekly: import and tag. Monthly: reconcile, review Insights, and build next month's budget.