The Bank Account Reconciliation helps you verify that the records you keep in Finance match the records kept by your bank. In short, it is a checkbook-balancing utility.
Each month the bank sends you a statement listing all checks, deposits, interest and fees that have affected the Account balance. Most of these transactions will already be in Finance, but some (like bank fees and interest) you will need to enter, using journal entries.
The most important thing to remember about the Bank Account Reconciliation is that it’s only to be used for a single bank statement at a time. Moreover, all entries that affect the balance on that statement must be in the Finance module for your bank reconciliation to be correct.
You can access the Bank Account Reconciliation by going to “Accounts” in the menu bar and choosing “Bank Account Reconciliation.”
- In step 1, choose the bank account for the bank statement you have.
- In step 2, Shepherd’s Staff does not know when the transaction cleared the bank. It only knows the date you put the transaction into the software. So you may need to research the oldest transaction in the registers to get the exact date of creation. Start by looking at the first couple of transactions on the statement and find the earliest date of those transactions that was put into Shepherd’s Staff. You will be able to change this date later if needed.
- In step 3, we are doing the same thing as step 2 except this time we are picking a date for the most recent transaction on your statement. Again, you can change the date later if you pick incorrectly.
- In step 4 and 5, enter the beginning and ending balances exactly as they appear on the bank statement.
- Click on the “Transactions to Clear” tab to start the reconciliation.