How to Reconcile Your New Chiropractic Office Bank Account Every Month
Learn a step-by-step process to reconcile your chiropractic practice bank account monthly, with practical tips and tools to keep your books accurate.
Reconciling your bank account each month is a non-negotiable habit for any new chiropractic practice. It ensures your records match the bank’s, catches errors or fraud early, and gives you a clear picture of your cash flow. This guide walks you through a simple, repeatable process you can start this week.
Why Monthly Reconciliation Matters
Reconciling means comparing your internal records (from your accounting software or spreadsheet) to your bank statement. Discrepancies can hide issues like double charges, missed payments, or even embezzlement. For a new practice, catching these early saves money and headaches. Plus, accurate books are essential for tax time, loan applications, and understanding your practice’s true profitability.
Step-by-Step Reconciliation Process
1. Gather Your Documents
Collect your bank statement for the month, your accounting software reports (like a transaction list from QuickBooks or Xero), and any receipts for cash transactions. If you use a dedicated chiropractic software like ChiroTouch or Jane, export your payment and adjustment reports.
2. Compare Transactions Line by Line
Start with the beginning balance on your bank statement and match it to your records. Then, go through each transaction: deposits, withdrawals, fees, and transfers. Mark each matched item in both places. Common items to verify:
- Patient payments (credit card, cash, checks)
- Insurance reimbursements
- Supplier payments (e.g., for supplies or equipment)
- Payroll transactions
- Bank fees (monthly maintenance, merchant fees)
3. Identify and Investigate Discrepancies
When something doesn’t match, dig in. Common causes:
- Timing differences: A check you wrote hasn’t cleared yet, or a deposit was made after the statement cutoff.
- Errors: Bank mistakes, or your own data entry errors.
- Unrecorded transactions: You forgot to log a purchase or a patient payment.
For each discrepancy, note the amount and reason. If it’s a bank error, contact them immediately. If it’s your error, adjust your records.
4. Adjust Your Records
Make necessary corrections in your accounting software. Add missing transactions, fix amounts, or reclassify items. For outstanding checks or deposits, note them as “pending” and include them in your next reconciliation.
5. Confirm the Ending Balance Matches
After adjustments, your records should match the bank’s ending balance. If they do, you’re done. If not, repeat steps 2-4 until they align.
Tools to Simplify the Process
You don’t have to do this manually. Many tools automate parts of reconciliation:
| Tool | Type | Price Range (per month) | Best For |
|---|---|---|---|
| QuickBooks Online | Accounting software with bank feeds | $30-$200 | Most practices; integrates with many apps |
| Xero | Accounting software with bank feeds | $30-$70 | Small practices; easy reconciliation |
| Wave | Free accounting software | $0 (paid add-ons) | Very new practices on a tight budget |
| FreshBooks | Accounting with invoicing | $15-$50 | Practices that invoice patients directly |
| ChiroTouch | Chiropractic-specific EHR with billing | $200-$500 | Practices wanting an all-in-one solution |
| Jane | Practice management with payment processing | $150-$300 | Modern, user-friendly option for chiro |
Most of these connect directly to your bank, pulling transactions automatically. You then just review and categorize them, which cuts reconciliation time to under an hour.
Common Pitfalls to Avoid
- Skipping months: Even if you’re busy, reconcile every month. Catching errors early is easier.
- Ignoring small discrepancies: A $5 difference might indicate a bigger issue. Always resolve it.
- Not keeping receipts: For cash transactions, always issue receipts and log them immediately.
- Mixing personal and business expenses: Use a separate business account to avoid confusion.
How Often Should You Reconcile?
Monthly is the minimum. If you have high transaction volume, consider weekly or even daily reconciliation. More frequent checks help you spot fraud or cash flow problems sooner. For a new practice, monthly is fine, but make it a fixed date, like the first of the month.
FAQ
What if my bank statement and records don’t match after reconciliation?
First, double-check your math and look for missing transactions. If you still can’t find the issue, contact your bank to verify their records. Sometimes there are holds or pending items you didn’t see.
Should I reconcile if I use a bookkeeper?
Yes. Even if a bookkeeper does it, you should review the reconciliation report monthly. It’s your responsibility to understand your practice’s finances.
Can I reconcile using a spreadsheet instead of software?
Yes, you can use Excel or Google Sheets. Create columns for date, description, amount, and check them off against your statement. It’s more manual, but it works for very low-volume practices.
How long does reconciliation take?
For a new practice with 50-100 transactions a month, expect 30-60 minutes. As you get faster, it can drop to 15-30 minutes.
The Bottom Line
Monthly bank reconciliation is a simple yet powerful habit. It keeps your financial data accurate, protects against errors and fraud, and gives you confidence in your practice’s health. Start this month: set a recurring calendar reminder, gather your documents, and follow the steps above. With practice, it becomes a quick, routine task that pays off in clarity and control.