Interbank transfer reconciliation starts with both company bank accounts and the entries already recorded in the ledger. Match the outgoing and incoming legs before adding a manual transfer. If bank feeds have imported both sides, a further entry can duplicate the movement and distort the cash accounts even though no extra money changed hands.
Identify the two accounts
Confirm both accounts belong to the company and record the transfer reference, date, currency and amount. A payment to a director’s personal account or a related company is a different transaction and should not be labelled an internal bank transfer merely because the recipient is familiar.
Obtain statements or authorised transaction records for both sides. In a currency transfer, keep the conversion information and any bank charge. Do not expect the nominal amounts to agree across currencies without explaining the rate and deductions.
Check what the software imported
List the outgoing bank-feed item, incoming item and any manual journal or transfer already created. Compare their references and posting status. The software may require matching the imported items to one transfer rather than creating a transfer from each side. Follow the accountant’s approved workflow for the specific system.
Example: one transfer, three ledger entries
The company sends S$10,000 from its operating account to its deposit account. Both feeds import the movement, and an administrator also creates a manual transfer. Ask the bookkeeper to identify which entries represent the same movement and how to reverse or match the duplicate with an audit trail. Do not delete arbitrary lines until the reconciliation works.
Explain timing differences
A transfer sent at month-end may arrive in the receiving account after the reporting cut-off. Keep the evidence and ask the accountant to determine the appropriate treatment. An outstanding leg should remain visible in the reconciliation rather than being forced to clear through sales or expenses.
Preserve the correction history
Document the original entries, the approved correction and the resulting balances. Re-run both bank reconciliations and have a reviewer confirm that the company has recorded one movement. IRAS’s recordkeeping guidance supports retaining records that explain transactions; the schedule should make this transfer understandable without needing the original operator’s memory.
Related practical guidance
For the surrounding work, see bookkeeping basics, bookkeeping and accounting, company records to keep.
Official guidance: IRAS company recordkeeping requirements.
Help with your company records
For accounting, bookkeeping and related compliance support, contact Raffles Corporate Services at [email protected] or WhatsApp +65 8501 7133. Tell us which records or process need attention so we can discuss the relevant next steps.
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