Reconciling a Bank Account in Cashbook

Article ID: 2024702         Last updated: 19 November 2010

 

The bank reconciliation feature allows you to make sure that your Cashbook records agree with your actual bank account.

Errors with bank reconciliation are usually attributable to an error in the Cashbook records. The following method is recommended when using the Bank Reconciliation feature.

When a bank statement is received, open the Bank Reconciliation window View menu. Enter the statement date and ensure the correct bank account is selected. As each item appears on the bank statement, select it in the Reconciliation windows on the right hand side, and then click Reconcile. The item will disappear and the Reconciled Balance will alter to reflect this item. Work through until every item on the bank statement has been reconciled.

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The user should then key in the balance from the statement. Please note that the reconciled balance will change automatically - there is no need to press 'Enter'.

The statement balance will not be retained when the user closes down the Bank Reconciliation screen.

The two grey boxes (Cashbook Balance and Reconciled Balance) should now be the same.

If they are not, the following should be checked:

  • Are you reconciling the correct bank account?
  • Have you ticked off all items that appear on the statement?
  • Have you ticked off only those items that appear on this statement (and any previous statement).
  • Have you added in all other items from your statement such as bank interest?
  • Are there any keying errors; transposed figures, incorrectly dated transactions, etc.
  • Have you made the correct double entries for bank / cash transfers?
  • Have you made the correct double entries for contras?
  • Are you trying to reconcile at a date that is not the most recent statement date?

Most of the above can be rectified by going back to the 'view payments' or 'view receipts' reports for the relevant month and carefully checking through the entries.

If an entry has been reconciled but should not have been, then click in the tick box and it will become unselected and unreconciled.

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The date should also be checked carefully.

Note:  Once you have checked off amounts beyond a statement date it is no longer possible (or necessary) to go back and re-run a reconciliation report for a previous statement, since the outstanding amounts will now be wrong in relation to an earlier statement.

 

 

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.