A Bank reconciliation is a process that deals with finding out and explaining the differences between the bank balance shown in the company’s bank statement, as supplied by the bank, and the corresponding amount shown in the company’s own records at a particular point in time.
- Select the account you want to reconcile.
- Get your bank statement (from the bank)
- The first time you reconcile you will need to enter a reconcile date and a start balance… Or 0 for the start balance if it is actually a new account.
- Enter the end balance from the statement
- Check entries that match the entries from your bank statement
- If all entries match, Difference should be 0. If it is, you are done and you have reconciled your account for the period. If you have some transactions unchecked, they will wait for next bank statement to be reconciled. If you have some transactions on bank statement but absent in system, go to the Bank Payments/Deposits and enter missing transactions, then repeat step 5.
- All checked items are recorded as reconciled in the bank reconciliation and the last ending balance and reconciled date is recorded for that account in the bank reconciliation.
- The next time you reconcile against a bank statement, the ending balance from the last reconciliation is automatically used as the starting balance for this reconciliation. You enter the ending balance for this reconciliation and repeat steps 5-7
- If you want for some reason to find transactions reconciled with bank statement on given date select the document date with the selector drop down. If you have a lot of bank statements entered you can skip the bank statement selector and enter date of bank statement in Reconcile Date directly. If there is no bank statement reconciled on given date the selector will display New.
Report for this bank statement can be check at Reporting->Banking
Click on the Banks statement with reconciliation to view the report.
Tips and Tricks
- To delete existing reconciliation date, un-tick every bank entry that had been ticked before. When every ticked entry have been un-ticked, the system will automatically delete the reconciliation date.
- Beginning balance is calculated on the fly as a sum of all reconciled transactions with older date.
- Select reconciliation date with Bank Statement selector, or add new one in Reconcile Date field. Then after first reconciled payment the new date appears in Bank Statement selector.
- The default selected period is currently 1 month before current date.