It is not necessary to reconcile the bank statement in order to close the month/year but it is recommended
It is not required, but we encourage customers to reconcile before closing. The reconciliation process sometimes requires additional entries or correction entries. These are far easier to do in an open period.
- If the period is closed you may not be able to reconcile the bank account.
- If a service charge or interest income transaction needs to be processed the system may not allow you to reconcile if you do not have the option to enter journal entries in a closed period.