You can use the bank reconcile option to match the bank transactions entered with those on the statement from your bank. Reconciling these values means the bank balances and transactions in Accounting are accurate.
You should reconcile your bank account each time you receive a statement from your bank. Before reconciling your bank account you should make sure you’ve 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.
You can’t reconcile cash in hand accounts.
- 1. Go to Banking.
- 2. Click the bank you want to reconcile.
- 3. On the New Transactions list, click Reconcile.
The bank activity shows your bank transactions. If a transaction has previously been reconciled, a tick appears in the Reconciled column.
- 4. Enter the following information:
|Statement Date *||Enter the end date of the actual bank statement you’re 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.|
* Indicates a required field.
- 5. Check the bank account is correct, and then click Apply.
If a bank reconciliation has previously been started and was saved for later, the saved reconciliation appears. If you want to undo this reconciliation, click on the Interest and Charges menu, click Unreconcile All Entries, and then click OK. Then, change the statement date and end balance as required and apply the changes.
- 6. Complete the bank reconciliation as follows:
- To reconcile all transactions at once, from the Interest and Charges drop-down menu, click 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, from the Interest and Charges drop-down menu, click Unreconcile All Entries.
- To record bank interest or charges, click Interest and Charges, complete the relevant information, and then click Save.
As you reconcile your transactions the reconciled balance adjusts. Once you’ve reconciled all of your transactions, the reconciled balance should match the target balance and the difference should be zero. If the difference isn’t zero, please refer to the following sections.
The starting balance is your last reconciled balance.
- 7. Click Finish.
If required, you can save the reconciliation and return to it later (for example, if you can’t reconcile the difference to zero now). To save the reconciliation, from the Finish drop-down menu, choose Save for later.
- 8. To print details of the reconciliation, click Print.
Depending on your browser, the report opens in a new window or tab. You can print the report from your browser menu bar then close the new window or tab.
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.
You’ve successfully reconciled your bank account. When you view the bank activity, a tick appears against the transactions in the reconciled column. You can view details of this and previous reconciliations from the bank record by clicking Reconciliations.
The Bank Reconciliation option only shows transactions that are currently unreconciled and are dated on or before the statement end date for the specified bank.
If a transaction doesn’t appear:
- Check you’ve 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, click Apply, and check the transaction appears.
- Check if the transaction has already been reconciled. To do this, save the reconciliation you’ve done so far by choosing Save for Later from the Finish drop-down 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 there’s a tick in the Reconciled column, the transaction has already been reconciled.
- If the transaction doesn’t 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 hasn’t 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’ve done so far by choosing Save for Later from the Finish drop-down menu. On the Activity, click the relevant transaction, change the date, and then click Save.
- If the transaction still doesn’t 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 still doesn’t 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 then re-enter it using the correct account.
- If the transaction isn’t showing against any of your other accounts, it’s likely it hasn’t yet been entered. You should enter all of your transactions up to your statement end date before reconciling your bank account.
If you can’t reconcile the difference to zero:
- Check the Statement End Balance is correct. If it isn’t, enter the correct amount, click Apply, and verify that the difference is now zero.
- Ensure the correct transactions have been reconciled and none have been missed. If you’ve reconciled a transaction in error, clear the Reconciled check box.
- Check the amount for each of the reconciled transactions. If a transaction has been entered with an incorrect amount, clear the Reconciled check box. Then save the reconciliation that you’ve done so far by clicking Save for Later on the Finish menu and return to the Activity tab of the bank account. You can then click the transaction that has the incorrect amount and change it as needed.
- If you are processing your first reconciliation, verify your bank account’s opening balance in Settings. Under Opening Balances, click Bank. If an opening balance is incorrect, update the balance using the Type option (debit or credit) for the relevant bank account and click Save. Return to Bank Reconciliation for that bank account and verify that the difference is now zero.