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 are accurate. If this is your first time completing a bank reconciliation in the system, please ensure you have first reconciled your opening balances before proceeding with the below steps.
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 service, you may be able to download your bank transactions instead of entering them manually.
You can’t reconcile cash accounts.
The downloaded transactions also have a cleared status. If you want to amend or delete an imported payment or receipt, you must remove the status first.
To remove a cleared status
- 1. Go to Banking, then click on the relevant bank account.
- 2. Click the Activity tab, then select the check box for the relevant transaction.
- 3. Click More, then click Remove Cleared Status.
The cleared status is removed.
- 1. Go to Banking, then click on the relevant bank account.
- 2. Click the Connect to Bank drop-down arrow, then click Reconcile.
If you use bank feeds and have already connected to your bank, click the X New Transactions drop-down then click Reconcile.
- 3. 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.|
* These details are compulsory.
- 4. Check the bank account is correct, then click Apply.
If you previously started a bank reconciliation and saved it for later, the saved reconciliation appears. If you want to undo this reconciliation, amend the statement date and end balance as required and apply the changes. Click the Interest and Charges drop-down list then click Unreconcile All Entries then click OK.
- 5. Complete the bank reconciliation as follows:
- To reconcile all transactions at once: From the Interest and Charges drop-down list, click Reconcile All Entries.
- To reconcile transactions one at a time: For each transaction select the check box in the Reconciled? column.
- 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 list, click Unreconcile All Entries.
- To record bank interest or charges: Click Interest and Charges and complete the relevant information then click Save.
As you reconcile your transactions the reconciled balance adjusts. The starting balance is your last reconciled balance. 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 reconciliation is not reversible. 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.
- 6. Click Finish.
- 7. To print details of the reconciliation, click Print.
Depending on your Internet 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’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 Banking tab, click the required bank account then click Reconciliations.
The bank activity shows all your bank transactions. If a transaction has previously been reconciled, a tick appears in the Reconciled? column.
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, then click Apply then 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 list. Next, on the Activity tab, check the From and To dates cover the date of the transaction and that the 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 Activity tab, check the From and To dates 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 date range – 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 list. Click the Activity tab then click the relevant transaction, amend the date, 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 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 then check 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 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 and return to the bank activity. From here, you can click 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 then click Opening balances then click 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 then click Save. You can now go back to the reconciliation screen and verify that the difference is now zero.