How often do you need to reconcile your bank statement?

The most appropriate frequency for reconciling a bank statement is monthly. Reconciling your bank statement on a regular basis, ideally every month, helps ensure that the transactions recorded in your financial records match those shown on your bank statement. This process is crucial for identifying any errors or unauthorized transactions promptly. Monthly reconciliation allows you to maintain accurate financial records, manage your budget more effectively, and safeguard against potential financial discrepancies.

Choosing to reconcile annually or biannually may lead to missed errors or fraud, making it difficult to track your financial health accurately over time. Waiting to reconcile only when you feel it's necessary can also result in overlooking financial issues that may arise unexpectedly. Therefore, monthly reconciliation is a best practice for managing personal finances effectively.