Reconcile Bank Accounts at Year-End

When you receive a bank account statement, reconcile your cash accounts with the bank. There are a few things you need to do to reconcile bank accounts at year-end.

Back up your data

  1. On the File menu, click Backup / Restore / Archive > Backup Data.
  2. Enter a reason for the backup, such as "Backup before reconciling".
  3. Select a backup method, and enter or select any relevant information.
  4. Click Start Backup.
  5. After your data is backed up, you can print the backup information for your reference.

Set up bank accounts

If you haven't already done so, set up the banks where you hold accounts.

Post any open transactions

If posting is required, you must post all transactions before reconciling.

  1. On the Transactions tab, click Accounting Overview > Post Batches.
  2. Select the open transactions you want to post.
  3. Click Post Selected.
  4. Click Yes to back up your data.
  5. Click Yes to confirm you want to post the selected batches.
  6. Print any reports you need.

example showing List of Batches to Post

Reconcile the accounts

When you receive your bank account statement, you can reconcile your cash accounts to track which transactions have cleared the bank.

  1. On the Other Information tab, click Bank Accounts > Bank Reconciliation.
  2. Select the bank account to reconcile.
  3. Enter the statement date.
  4. If you're reconciling this statement through a date other than today, select Use a Cutoff Date and enter the date. Otherwise, select No Cutoff Date.
  5. Enter the statement's ending balance, and click Next.
  6. Select the deposit transactions from your statement or those affecting the cash account during this billing cycle. Voided receipts and receivables do not display in the list. Click Next.
  7. Select the check/withdrawal transactions from your statement or those affecting the cash account during this billing cycle. Voided checks do not display in the list. Click Next.
  8. If you have any charges included in this statement that were not previously entered, enter them here. These include ISF fees, maintenance fees, and so on.
    Note: A journal entry is created when you enter this information. If you're reconciling multiple accounts, any entered here are debited and the primary cash account is credited.
  9. Click Next.
  10. If you have any money not previously entered that the bank paid you on this statement, you can enter it here. This includes interest.
    Note: A journal entry is created when you enter this information. If you're reconciling multiple cash accounts, any entered here are credited and the primary cash account is debited.
  11. Click Next.
  12. The figures are calculated and a summary displays. If your difference is zero and you're ready to reconcile selected items, click Reconcile. Otherwise, you must correct the unreconciled difference.

Bank Reconciliation Wizard showing Total Balances and a Summary Recap of transactions

Correct the unreconciled difference

If the adjusted totals are not equal and you have an unreconciled difference, then the statement doesn't balance with the cash account. You must research the problem and correct it.

  1. In the Bank Reconciliation Wizard window, click Print Outstanding to view a list of all unreconciled transactions. This does not include items that equal $0.00.
  2. Look at the list to determine what may be causing the difference. See these tips for guidance:
    Tip: My unreconciled difference is positive... The statement balance is less than the ledger balance. This could be because:
    • Checks are too high. Did you clear some items that were not on the statement?
    • Deposits are too low. Are there items on the statement that haven't been entered in PDS?
    • Bank charges are too low.
    • Bank interest is too high.
    Tip: My unreconciled difference is negative... The statement balance is greater than the ledger balance. This could be because:
    • Checks are too low. Did you clear all the items on the statement?
    • Deposits are too high. Did you enter items in the program that weren't on the statement?
    • Bank charges are too high.
    • Bank interest is too low.
  3. To verify or correct any items you entered, click Back.
  4. If you need to research issues further, click Finish Later.