Overview of bank reconciliations

 

Use the Bank Reconciliation feature to reconcile your bank statements and general ledger closing balances for all bank accounts each month.  Reconciling bank accounts involves clearing checks and deposits that have cleared the bank, entering adjustments to the general ledger, and printing a detailed reconciliation worksheet that compares the adjusted bank balance with the adjusted general ledger balance.  When the reconciliation is complete, you can automatically enter adjustments such as bank service charges to the general ledger.  You can also save reconciliations to work on later.

 

It is not necessary to reconcile your banks for the current month before beginning data entry for the next month.  (Most people do not receive their bank statements until the next month.)

 

Overview of completing a bank reconciliation:

  1. Print an Outstanding Check List selecting the option to include check details.  To include all outstanding checks, print it from 01/01/1980 to the end of the month you are reconciling.  Print this report before canceling checks so that if checks are canceled incorrectly, you have the original list of outstanding checks to refer to.

  2. Print the Check Register and the Cleared Check Register selecting the options to include check details.  Print them for the month you are reconciling.

  3. Print the Bank Journal, the Receipt Journal and the Detail Journal Listing for the month you are reconciling.

  4. If you are reconciling a trust account, print a Trust Listing by Bank.

  5. Cross-check the returned checks from the bank with the bank statement to ensure that all checks have been returned.  If there are errors on the bank statement notify the bank immediately.  Ensure all checks returned with the bank statement match all debits on your account.

  6. Select Bank Reconciliation from the Month/Year-end menu, and enter the bank general ledger account number, bank statement date, start and end dates for the period you are reconciling (normally the start and end dates of the previous month) and the ending balance from your bank statement.

  7. Enter or modify the Posting Adjustments if necessary.  These are items on the bank statement that are recorded in the general ledger.  Enter or modify the Worksheet Adjustments if necessary.  These are items on the bank statement that are not recorded in the general ledger, and are shown as adjustments only.

  8. Clear all checks and deposits that have cleared the bank, ensuring that the amount of each check and deposit entered in the program equals the amount as it cleared the bank.  Read Clearing checks based on a bank statement file.

  9. Print the bank reconciliation worksheet to ensure it is in balance, and record the adjustments in the general ledger using the Journal Entries feature.

  10. Print a Detail Journal Listing for the bank account to ensure it agrees with the bank reconciliation worksheet.  Also reprint the Cleared Check Register.

  11. After confirming these reports are correct, save the bank reconciliation.

 

Reconciling banks

Bank reconciliation adjustments

Reinstating checks and deposits cleared in error

Undoing bank reconciliations to make corrections

Correcting bank reconciliation problems

Bank reconciliation tips