About bank reconciliation
You can use the bank reconcile option to match the bank transactions you entered with those on the statement from your bank. Reconciling these values means the bank balances and transactions are accurate.
You should reconcile your bank account each time you receive a statement from your bank. Before reconciling your bank account, make sure you have entered all of your transactions up to the end of your bank statement.
If you use an online banking system, you may also be able to import your bank statement.
Note: You cannot reconcile Cash in Hand accounts.
Reconciling a bank account
- Go to Banking.
- Select the bank account you want to reconcile.
- Select Reconcile.
- The bank activity shows your bank transactions. If a transaction has previously been reconciled, a check mark appears in the Reconciled column.
- Enter the following information:
- Statement Date. Enter the end date of the actual bank statement you are about to reconcile.
- Statement End Balance. Enter the ending balance from the bank statement.
- Reference. Enter a reference for this reconciliation. For example, you could use the statement page number or date.
Note: If a bank reconciliation has previously been started and was saved for later, the saved reconciliation appears. If you want to undo this reconciliation, select on the Interest and Charges menu, select then Unreconcile All Entries. You can then change the statement date and end balance as required and then apply the changes.
- To reconcile all transactions, on the Interest and Charges menu, select Reconcile All Entries.
- To reconcile transactions one at a time, select the check box in the Reconciled column for each one.
- To unreconcile a single transaction matched in error, clear the check box in the Reconciled column.
- To unreconcile all transactions at once if matched in error, select Unreconcile All Entries on the Interest and Charges menu.
- To record bank interest or charges, select Interest and Charges, complete the relevant information, and then select Save.
As you reconcile your transactions, the reconciled balance is adjusted. Once you have reconciled all of your transactions, the reconciled balance should match the target balance and the difference should be zero. If the difference is not zero, please refer to the troubleshooting steps below.
The starting balance is your last reconciled balance.
Note: You can print the reconciliation at a later time by going to the bank account, clicking Reconciliations, selecting the reconciliation in question, and clicking Print.
When you view the bank activity, a check mark appears against the transactions in the reconciled column. You can view details of this and previous reconciliations from the bank record by clicking Reconciliations.
If a transaction does not appear in bank reconciliation
The Bank Reconciliation page shows only transactions that are currently unreconciled and are dated on or before the statement end date for the specified bank.
If a transaction does not appear:
- Check you have entered the correct statement date. Only transactions up to and including this date are available to reconcile. If the date is incorrect, enter the correct date, select Apply, and check the transaction appears.
- Check if the transaction has already been reconciled. To do this, save the reconciliation you have done so far by clicking Save for Later on the Finish menu menu. On the Activity tab, on the Filters menu, check the from and to date covers the date of the transaction and that transaction appears. If it does appear and a tick appears in the Reconciled column, the transaction has already been reconciled.
- If the transaction does not appear on the bank activity, check the from and to date are correct. It may be possible the transaction was entered with a date outside the range. To make sure it has not been entered with an incorrect date, try entering a from date in the past to a date in the future (for example, 01/01/2000 to 31/12/2020). If the transaction has been entered with an incorrect date, save the reconciliation you have done so far by clicking Save for Later on the Finish menu menu. On the Activity tab, select the relevant transaction, change the date, and then select Save.
- If the transaction still does not appear, check the activity of your other bank accounts to make sure it has not been entered against a different account. If it has, delete the transaction and then re-enter it using the correct account.
- If the transaction still does not appear, check the activity of your other bank accounts to make sure it hasn’t been entered against a different account. If it has, delete the transaction and then re-enter it using the correct account.
- If the transaction is not showing against any of your other accounts, it may not have been entered. You should enter all of your transactions up to your statement end date before reconciling your bank account.
If the difference is not zero
If you cannot reconcile the difference to zero:
- Check the Statement End Balance is correct. If it is not, enter the correct amount, select Apply, and verify that the difference is now zero.
- Ensure the correct transactions have been reconciled and none have been missed. If you have reconciled a transaction in error, clear the Reconciled check box.
- Check the value of your reconciled transactions. If a transaction has been entered with the incorrect value, clear the reconciled check box. You can then save the reconciliation that you've done so far by clicking Save for Later on the Finish menu menu and return to the bank activity. From here, you can select the relevant transaction and change the value.
- If you are processing your first reconciliation, ensure that your bank's opening balance is correct. You can check this by going to Settings menu, under Opening balances, select Bank Opening Balances. If you notice that the opening balance is incorrect, update the balance in the debit/credit field for the relevant bank account and select Save. You can now go back to the reconciliation screen and verify that the difference is now zero.
Finding a list of completed reconciliations
- Select the specific bank account you are seeking to view the completed reconciliations from.
- Next to " activity " and " addresses and contacts " you will see " reconciliation ".
- Select reconciliation a list of completed reconciliations will appear for your view.
You will be able to double select on the completed reconciliation and print as needed.