You can reconcile the book balance in any cash account with the balance from the bank statement from any bank or with the balance from any statement for any credit card you set up on the Bank and Credit Card Setup screen for any period using the Banking>Reconciliation screen.
If you select Banks for the Type field, the bank and date range for the current reconciliation appear, along with panels listing all disbursements and receipts for the selected bank account and period, and a summary of the reconciliation that provides the computations you need to reconcile the selected period. After you mark all disbursements and receipts for the active period that have cleared the bank, and if the bank balance calculated by the program matches the ending balance from your statement, you can reconcile the period.
If you select Credit Cards for the Type field, the credit card and date range for the current reconciliation appear, along with panels listing all charges and payments for the selected credit card and period, and a summary of the reconciliation that provides the computations you need to reconcile the selected period. After you mark all cleared charges and payments for the active period, and if the balance calculated by the program matches the ending balance from your statement, you can reconcile the period.
Periods must be reconciled in sequence. The initial From date is specified when you set up the selected bank or credit card. After you reconcile each period, the From date advances to the day after the previous To date. For example, if you reconcile the period ending on June 30th of the current year, the From date for the next reconciliation is automatically set to July 1st of the current year. If you need to reconcile a period shorter or longer than the default monthly period, you can change the Period Ending date on every reconciliation.
Figures from the previous reconciliation are carried forward automatically.
To reconcile your bank statement for any period:
Select Banks to reconcile a bank statement or Credit Cards to reconcile a credit card statement in the Type field of the Reconciliation screen.
Select the account to reconcile from the Bank Account or Credit Card drop-down list depending on which type of statement you are reconciling.
Select the end date of the period to reconcile from the Period Ending drop-down list.
By default, the Period Ending
date is 30 days from the From
date. You can use the Change
button to adjust the date to match the date on your statement. For
example, if the Period Ending
date is June 30th of the current year but your statement ends on June
29th of the current year, you can use the Change
button to adjust the date to match the statement.
Note: To make changes to a
prior period that has already been reconciled, select the period from
the Period Ending list and
click Unreconcile. The selected
period and all subsequent periods
are unreconciled. After making your corrections, you must reconcile
each period again in sequence.
You cannot unreconcile a period in a closed year.
For Reconciling a:
Bank Statement - Click the checkbox for the items listed in the Disbursements and Receipts panels that have cleared the bank. If you have uploaded transactions electronically using the Bank Feeds feature, checks and deposits are marked as cleared automatically. If this is your first reconciliation, click Outstanding Transactions from the Related Actions panel to open the Outstanding Items in the Bank Reconciliation screen to enter information about uncleared checks and deposits from prior periods.
Credit Card Statement - Click the check box for the items listed in the Charges and Payments panels that have cleared. If you have uploaded transactions from your credit card statement electronically using the Bank Feeds feature, these charges and payments are automatically marked as cleared. For your first reconciliation of any year, charges and payments from prior periods must be cleared. After you close a year, unreconciled items are brought forward automatically. If this is your first reconciliation, click Outstanding Transactions from the Related Actions panel to open the Outstanding Items in the Bank Reconciliation screen to enter information about uncleared charges and payments from prior periods.
Note: Items entered on the Outstanding Items in the Bank Reconciliation screen do not update your general ledger.
Click the entry in the Amount column for any item to drill down and review the underlying originating transaction.
For a:
Bank Statement - Enter any bank service charges and interest earned for bank statements in the fields in the Bank Charges section of the screen. If you have specified the appropriate accounts in Bank Setup, you can record bank charges for checks and interest earned on deposits.
Credit Card Statement -Enter any finance charges in the field of the Bank Charges section of the screen. You can specify the appropriate account for services charges on the Bank and Credit Card Setup screen when you set up the credit card.
Note: We recommend that you click Save to save your work to this point, before beginning the actual reconciliation.
Review the entries automatically populated in the Reconciliation Summary panel to ensure that they are correct:
Beginning Book Balance: The opening balance in the cash account for the current reconciliation period, equivalent to the Ending Book Balance from the previous period's reconciliation, adjusted by any transactions to that period made after that reconciliation.
Disbursements and Receipts for bank statements or Charges and Payments for credit card statements: The total disbursements and receipts for the period, including entries to the general journal and any bank charges and interest earned, or the total charges and payments for the period, including entries to the general journal and any service charges, respectively.
Adjustments: The total amount of trial balance-adjusting entries to the selected cash account.
Ending Book Balance: The adjusted balance for this account and period on both the trial balance and the general ledger.
Outstanding Checks and Deposits in Transit for bank statements or Outstanding Charges and Outstanding Payments for credit card statements: The total amount in uncleared checks and deposits, or the total amount in uncleared charges and payments, respectively.
Enter any amount needed to resolve an immaterial discrepancy (such as a rounding error) in the Total Corrections field. The figure entered into this field is an adjustment to cash that affects only the bank reconciliation and is not reflected in the trial balance.
Enter the balance from your bank
or credit card statement in the Balance
Per Statement field.
The difference between the calculated balance and the Balance
Per Statement is automatically calculated and appears in the
Difference field.
Review and evaluate the amount in the Difference field.
If you are not ready to reconcile the period, click Save.
If the amount in the Difference field is not zero, either enter an amount in the Corrections field to resolve the difference, or return to Transactions to correct the error and then complete the reconciliation.
Click Reconcile
from the Action bar if the difference between the calculated balance and Balance
Per Statement equals zero.
The period is reconciled and you advance to the next period, with any
unreconciled items automatically carried forward.
Use items on the Action bar to print your reconciliation report, upload to Cloud Cabinet, or attach a scanned copy of a statement.
For more information on:
Setting up bank and credit card accounts on the Bank and Credit Card Setup screen, see Set Up Bank and Credit Card Accounts
Uploading transactions, see Upload Transactions from Bank Feeds or Statements
Bank Feeds, see Bank Feeds
Closing a year, see Close Year
Outstanding transactions, see Add or Review Outstanding Transactions