Reconciling a Bank Account

To reconcile Bank Account(s) you will need a current statement(s). You will also need to have posted Expenses, Sales, Payroll and General Journal entries. This will make sure that you are working with the most current information and nothing is be missing. When these items ready, take the following steps to reconcile a bank account:

  1. You must post if you have not done so in the last few days. It is not important to post if all the transactions in the temporary file are more recent than the statement. If in doubt go ahead and post by selecting Yes. To continue with the reconciliation without posting click No. The following window should appear:

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  1. Enter the bank statement date in the Reconciliation Ending Date field. If the date is changed, the system will hide transactions created since the statement date. This makes reconciliation a bit easier, especially if many transactions are involved.

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  1. Enter the bank statement ending balance in the Statement balance entry field. Click on deposits tab with the mouse or hit Ctrl + tab keys on your keyboard to move to the Deposit tab.

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  1. Check all Deposits that are listed on the bank statement by clicking the Status column with your mouse or hitting the space bar on the keyboard. If it is the first time that you have reconciled your bank account with the EBMS software, check all deposits that have been on prior statements. Only outstanding deposits should be listed without check marks. Notice that the Total Outstanding on the bottom of the tab reflects the total of unchecked deposits or outstanding deposits. If deposits that are listed on your bank account are not found on deposits tab it is important to make sure the deposit was properly entered in the system. See the Deposits section for information.
  2. To view more information on a specific deposit click the Source button and the following window will appear:

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    1. To view details of the specific payment listed click Source button to list all the customer’s invoices paid with the selected payment. Click Close to return to the Account Reconciliation window.

  1. Move to Checks tab and follow the same steps as the Deposit tab. Mark all the checks that are on your statement or that are not outstanding. Click Source to view the source of the highlighted check. The Outstanding Total on both the deposits and checks tabs should equal the total outstanding deposits and checks.

    1. To void a check or deposit, highlight and click Void. This will bring you into a Wizard with instructions on how to complete that function.

    2. If there are any miscellaneous debits or credits on your statement such as bank charges or interest received, press the Adjustments button. See the previous section for more on Adjustments. Make sure all adjustments are checked if they appear on the bank statement.

  2. If the Adjusted Statement Balance equals the Ledger (account) balance, the Difference field will show zero; congratulations, your account balances! If the Difference total is not equal to zero, review the section on Correcting Differences in Bank Account Reconciliation for more on voiding checks, correcting differences or making adjustments.

    1. The difference field MUST equal zero before you can process or complete the account reconciliation.

  3. If you or your accountant prefers to have a bank account reconciliation report, press the Print button and select the appropriate report. If the bank account reconciliation report is not listed, see the section on Reports for more details. This report is recommended when reconciling the bank statement at the end of the fiscal year.

  4. It is recommended that you process the check register report if you have not done so since the last reconciliation. The check register process will print a check register report and reset the Printed Register Balance. You will be prompted before the check register is reset. See General Ledger > Chart of Accounts > General tab to view printed register balance value.

  5. Click Process to complete account reconciliation. This step removes all checked Deposits and Checks, leaving only the outstanding transactions.

Click OK to exit window.