Out of Balance Bank Reconciliation

Article ID: 2024648              Last updated: 10 November 2015 

 

Introduction

The Reconcile Accounts feature is an easy to use tool to reconcile your bank account, or any other account on your accounts list. You may find at times however, that you have an Out of Balance figure when reconciling your chosen account. This support note helps you identify why this might occur and how to rectify the problem.

 

Step by Step

1.  Find out if it is a previous reconciliation or the current reconciliation that is out of balance

Enter the last successfully reconciled balance in the New Statement Balance field (from the LAST BANK STATEMENT'S closing balance).

Enter the reconciliation date, in the Bank Statement Date field.

Ensure that no items are ticked/selected (click once or twice on the tick button at the top-left of the transaction list within the reconciliation window to do so).

If you are not out of balance...

The problem is with the CURRENT reconciliation. Check for any Bank Fees, Direct Debits, un-entered transactions and so on that may have been forgotten or incorrectly entered. You should also check for any errors on the bank statement.

If you are still out of balance, move on to Step 2...

 

2.  Check for any future dated Transactions

Enter 31/12/9999 into the Bank Statement Date.

Check to see if there are any mistakenly dated transactions.

 

3. Has the opening balance of the bank account been changed?

From the toolbar at the top of your screen, go to the Setup> Balances> Account Opening Balances screen and check that the opening balance for the relevant bank account agrees with the Cash Book balance as at the CONVERSION date.

 

4.  Look for missing Cheque ID's

Go to Index to Reports> Banking and customise the Bank Register report.

In the Report Fields tab, untick the Deposit field so that you are reporting just WITHDRAWALS.

In the Finishing tab, sort the report by ID No.

Check the sequence of cheque numbers to see if any are missing.

 

5.  Look for missing Deposits

From the Index to Reports> Banking section, select and customise a Bank Register report.

In the Report Fields tab, untick the Withdrawal field so that you are reporting just DEPOSITS.

In the Finishing tab, sort the report by ID No.

Check the sequence of transaction numbers to see if any are missing.

 

6.  If the problem is still to be solved

From the Index to Reports> Banking section, run the Bank Register report. Customised the report and select a date range from the start of the financial year to the reconciliation date, and in the Finishing tab, sort the report by Date. Run the report and perform a manual reconciliation using your bank statements.

 

 

Disclaimer:  This information is of a generic nature. For specific advice regarding your particular circumstances please seek assistance from your Accountant, HM Revenue & Customs or your IT Consultant as appropriate.

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