Getting Started with Reconciling Accounts
Did you notice the Reconcile button in the top right hand corner of your account, and wonder what that was for? Or maybe you noticed your balance in YNAB is a little (or a lot) off track. Because you use your budget to make spending decisions, your accounts in YNAB need to agree with your bank—this process is called Reconciliation. We recommend you reconcile your on-budget accounts, such as checkings, savings and credit cards, at least once a week.
Below, we'll explain the balances and transaction statuses that come into play during that process. Don't worry if this is unfamiliar territory, we'll walk you through the complete steps in the next help doc.
In This Article
When reconciling, you’ll be comparing your cleared balance that appears at the top of your register in YNAB with your cleared balance at the bank. Many banks call this balance the Current Balance, and it won't include pending transactions. Need help finding your cleared balance? We've got you covered.
While you won't be comparing your uncleared balance or working balance at this time, when you've finished reconciling you will find that your uncleared balance is limited to just the transactions that are currently pending at the bank.
Your transactions have one of three statuses in the far right-hand column of your account register:
- Cleared: Transactions that your bank knows about and have finished processing are cleared and are marked with a green C icon at the right-hand side of the transaction line.
- Your bank likely calls these transactions cleared or processed.
- If you import transactions, many of them will be cleared in YNAB automatically.
- Cleared transactions make up the Cleared Balance at the top of your register.
- Uncleared: Transactions that your bank has not processed are uncleared and have a gray C icon at the right-hand side of the transaction line.
- Your bank likely calls these pending transactions.
- A transaction might be uncleared because your bank hasn’t yet received notice of the final transaction, or if you wrote a physical check that hasn’t been cashed.
- Uncleared transactions make up the Uncleared Balance at the top of your register.
- Reconciled: Once transactions have been reconciled they are locked and marked with a green lock icon. 🔒
YNAB reminds you to reconcile frequently by including a timestamp of how many days it has been since you last reconciled. This timestamp is in the upper right hand corner under the Reconcile button in the account register. When you hover over the timestamp, it shows exactly how long it’s been, right down to the minute.
Here's a video walkthrough of the reconciliation basics. You'll notice we've made some visual & verbiage updates since these videos were created, but the method remains the same!
Ready to click the Reconcile button? Follow the steps in the next help doc to learn How to Reconcile Accounts.