Some Bank Differences Are Temporary, and They Still Need to Be Explained
Bank reconciliations often include items that are real but unresolved. Bank-side errors, provisional credits, and pending adjustments fall into this category. In MIP®, these items should not be cleared or ignored while waiting for the bank to act.
Using the suspense or notes field allows you to document what the item is, why it exists, and what is expected to happen next. That context matters because the reconciliation is reviewed later, often by someone who was not involved when the issue first appeared. Writing the explanation while the details are fresh prevents guesswork in the next period.
Once the bank resolves the issue, the documentation can be removed and the item cleared. The reconciliation then shows a complete and understandable timeline rather than a gap that requires verbal explanation or follow-up emails.
This video is for accounting teams that want reconciliations to explain themselves across periods. It is not intended for organizations that rely on memory or side conversations to justify outstanding differences.
McGovern Consulting Group provides MIP Accounting® Training and Implementation Services. We focus on documentation discipline because reconciliations are reviewed long after they are completed, and context rarely survives without being written down.
If you want reconciliations that are easier to review and easier to defend, schedule time with us to review your process.
https://mcgoverncg.com/schedule/
If you want to reinforce your MIP fundamentals first, free MIP® fund accounting training is available here.
https://www.freemipfundaccountingtraining.com/
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