Why do I need to reconcile my draw down transfer the next day?
Next-day reconciliation using "Link as Payment or Deposit" matches your bank statement entries with the draw down you processed, keeping your accounts accurate.
When you complete a fee draw down, you transfer money from your client account to your business account. This transfer appears as a transaction on both bank statements—a withdrawal from the client account and a deposit into the business account.
Why reconciliation is necessary:
The next day, you need to reconcile these transfers using "Link as Payment or Deposit" so that the system knows these bank statement transactions match up with the draw down you processed. Without this reconciliation step, the system would show the draw down as completed internally but wouldn't connect it to the actual bank movements.
What reconciliation achieves:
- Links the system record of your draw down to the real bank transactions
- Ensures your client account and business account balances match your actual bank balances
- Completes the accounting loop so your records are accurate
- Prevents confusion about unmatched transactions when viewing bank statements
When to reconcile:
You should reconcile draw down transfers the day after you process them. This timing allows the transactions to appear on your bank statements (most banks update overnight), giving you the entries you need to match in the system.
How to reconcile:
Navigate to your bank reconciliation area and use "Link as Payment or Deposit" to match the transfer entries from both accounts. The system will recognise that these transactions correspond to the draw down you completed the previous day.
If you're unsure about using the reconciliation feature, contact support@agentos.com for guidance.
For more information on draw downs and bank reconciliation, refer to other articles in the Finance & Accounting section of the knowledge base.