Bank reconciliation is the process of verifying your records of transactions posted to bank accounts against records of the institutions. (The term bank is used generically to refer to any institution from which you receive or can obtain statements, whether by mail or electronically.) To avoid potential problems caused by undiscovered errors, you should reconcile your bank accounts regularly.
Go to the Bank Accounts tab and click on the date (or the word Never if this is your first reconciliation) under the
Last reconciliation heading:
Then click New Bank Reconciliation to create a new bank reconciliation statement:
Date you will reconcile transactions until, usually the date of the statement, and enter the closing
Click Create to save the report. This will create a bank reconciliation statement to guide you through the bank reconciliation steps. To see the reconciliation statement, click View:
If Manager’s figures agree with the bank statement, the account reconciles and the Bank Reconciliation Statement will appear:
The statement will show:
Closing balance as per bank statementat the top
Adjusted closing balance as per bank statement
Closing balance as per balance sheet, representing the actual bank balance as recorded in Manager
If the figures disagree, Manager will show you a screen to help with the bank reconciliation process. Exact contents of this screen may vary, depending on the problem detected. You will first be asked to double-check closing balances as per the bank statements:
You may be asked to asked to confirm status of pending transactions:
If you make corrections, Manager’s suggestions may change. If the problem does not resolve, you may be presented with a list of transactions since your last reconciliation. Depending on how often you reconcile, the list of transactions can be quite lengthy. Manager might break down the transactions into smaller segments to make it easier to check against your bank statement. To do that, Manager may ask for interim closing balances as per your bank statement.
It’s usually most efficient to keep providing new closing balances as long as you are asked for them. Manager will use this information to pinpoint the specific days you don’t reconcile. Instead of checking a whole month of transactions at once, you will only need to reconcile one day at a time and only days that don’t reconcile.
When you compare transactions from the list to your bank statement, use the Edit button to correct or delete transactions as required. If a transaction is included in your bank statement but not in Manager, use the applicable New Payment, New Receipt or New Inter Account Transfer button to record it.
Once you resolve all issues, your reconciliation statement will appear and the
Status of the bank reconciliation statement will indicate Reconciled when viewing the list of bank reconciliation statements:
When one or more earlier reconciliation statements do not reconcile properly, later statements also show as Not reconciled, even if their balances are correct. When any earlier statements are corrected, later statements will automatically show as Reconciled.