The Importance of Bank Reconciliation in Applied Epic

January 24, 2026

Fully utilizing all features of the General Ledger in Applied Epic unlocks many reports and dashboards for your agency to track financials, client balances, and carrier payables. If your financial reports do not look accurate, it could be because bank activity has not been recorded. The best way to track activity is to reconcile your bank accounts in Epic.

In this article, we will discuss a high-level overview of what bank reconciliation is, how to do it, why you should reconcile, and additional tips and next steps.

What Is Bank Reconciliation and How Do I Process It?

Bank reconciliation is an area in the General Ledger where you can reconcile activity that occurred in your bank for a given month. Found in General Ledger > Reconciliations > Bank, each month should get its own entry for each bank account configured in Applied Epic.

To create a bank reconciliation entry, click on the + button. In the next screen, select a bank account to reconcile. Then, enter your statement date (typically the last day of each month), description, and bank ending balance.

After clicking Continue, the next screen shows you all activity entered in the General Ledger up to the statement date you entered. The top section will show Receipts entered; the bottom section will show Disbursements entered. Take your actual bank statement and select the activity that cleared your bank for that month. As you reconcile, the Difference at the bottom of the screen will fluctuate, but should come out to $0 at the end of reconciling.

If you do not see a certain transaction, it may not have been entered, or it could have been entered with an effective date that is later than the date you entered in the previous screen. You can pull these in manually by clicking on Actions > Locate Additional Items

In the pop-up screen, select your Entry Type and how you want to search for the transaction. If found, check the box and click Finish to pull it into your bank reconciliation.

Once you have finished your bank reconciliation, finalize it in the main Bank Reconciliation screen by right clicking on the entry and selecting Finalize Statement. Finalizing allows you to create the next entry for that bank account.

Why Reconcile Your Bank Accounts?

Reconciling each bank account configured in Applied Epic ensures that all activity that has occurred in the bank has been recorded. If a client payment has not been applied to their account, or a payment made to a carrier has not been recorded, you will be able to catch these possible oversights in the bank rec area.

Reconciling also allows you to keep track of Receipts and Disbursements entered that have not cleared the bank. If a transaction was recorded a few months ago and it has not yet cleared the bank, it’s important to review these routinely and reverse or re-issue, if needed.

CPAs typically ask for bank reconciliation reports along with financial reports at year-end, so reconciling monthly ensures you can provide accurate reports and data when needed.

Next Steps and Additional Tips

Tip #1

After you complete a bank rec, you can run a Bank Reconciliation Detail report, which will show the transactions reconciled. Within the report criteria, you can choose whether you want to include outstanding transactions (the ones not yet reconciled). This criteria helpfully keeps track of outstanding transactions in case reversal/re-issue is needed. The Bank Reconciliation Detail report can be found in the General Ledger reports section.

Tip #2

If you find that your bank reconciliations result with a Difference balance, there’s a few reasons why that could be:

Your beginning balance for your bank accounts is inaccurate
A transaction was selected that didn’t clear the bank
A transaction reconciled does not fully match the amount cleared in the bank (could be off by a few cents, for example)
A reconciled transaction includes a balance that clears the next month

Tip #3

To make bank reconciliation easier and more efficient, it’s important to enter Receipts and Disbursements exactly how they clear the bank. If a deposit in your bank includes multiple checks, enter one Receipt that includes all checks in that deposit instead of one receipt for each check.

Tip #4

When it comes to voided entries, always make sure you select both the original entry and the voided entry to offset each other.

Tip #5

You also do not need to wait for the end of the month to start reconciling your bank in Epic. If you have a high volume of transactions in a given month, you can create a reconciliation entry and reconcile the bank throughout the month. You would just change your ending balance to whatever the balance is as of the date you are reconciling.

Reconciling throughout the month instead of at the end makes it easier to find what might be missing compared to going back through a whole month’s worth of transactions.

Tip #6

The last thing to remember is, when you run your Balance Sheet, the GL balance for your bank accounts will never 100% match the actual balance in Epic. This is due to Disbursements or checks written out of Epic that may not have cleared the bank yet. However, if you run your Bank Reconciliation Detail report (mentioned above) and selecting to only include Outstanding Items, the total of outstanding plus your bank ending balance is what equals the bank balance on your Balance Sheet.

How Kite Technology Can Help

If you think your bank balances are inaccurate and require cleanup, would like additional assistance with reconciling your bank accounts, or have questions, the Applied Epic Agency Consultants at Kite Technology can help. Our team understands the importance of accurate accounting in Applied Epic and can help you feel more confident in your data and investment. Reach out our team today!