Bank Reconciliations

The Bank Reconciliations tab helps you confirm that all the transactions in your bank account, as recorded by the software, match those on the actual bank statements provided by your bank. This process verifies that each transaction on your bank statement is accurately recorded in your accounting software, ensuring that your financial records are both precise and comprehensive.

 

Creating a New Bank Reconciliation

To create a new bank reconciliation, click on the New Bank Reconciliation button.

Understanding the Bank Reconciliations Tab

The Bank Reconciliations tab features several columns that provide important information about your bank reconciliations:

Date

The Date column displays the date on which the bank reconciliation is being conducted. This date corresponds to the closing date of the bank statement you are reconciling.

Bank Account

The Bank Account column shows the bank account that is currently undergoing reconciliation.

Statement Balance

The Statement Balance column displays the closing balance entered from the bank statement for the bank account, corresponding to the date specified in the Date column.

Discrepancy

The Discrepancy column shows the difference between the Statement Balance you entered and the sum of all cleared transactions up to that date in your accounting software. If the bank statement balance matches the calculated sum, there is no discrepancy, and this column will show a zero balance.

Status

The Status column indicates the reconciliation status of the bank account as of the specified date:

• Reconciled: If the Discrepancy column shows a zero balance, the status will display Reconciled, indicating that your records match the bank statement.
• Not Reconciled: If there is any other amount in the Discrepancy column, the status will display Not Reconciled, indicating that there are differences that need to be investigated.

Customizing Column Visibility

You can customize the visibility of columns in the Bank Reconciliations tab to suit your preferences. Use the Edit Columns button to show or hide columns as needed.

 

By regularly reconciling your bank accounts using the Bank Reconciliations tab, you ensure that your financial records are accurate and up-to-date, allowing for better financial management and reporting.