The Bank Reconciliation is a tool to make sure that all cash receipts, cash disbursements and adjustments in your account are recorded in the general ledger. This can be used for both Bank and Credit Card reconciliations. You will need your statement for the date range selected in the new reconciliation screen to perform this exercise. In the reconciliation you are able to clear 4 types of transactions:
  • Deposits - a group of cash receipts
  • Cash Receipt - a single cash receipt
  • Cash Disbursement
  • Journal Entry Lines
Creating a Bank/Credit Card Reconciliation
 

Step by step:

  1. Navigate to the Bank Reconciliation Tab (This is also used for a credit card reconciliation) 
  2. Click New button
  3. Enter the following 4 fields of information from your statement:
    • Start Date
    • End Date
    • Beginning Balance
    • Ending Balance
      • IMPORTANT NOTE: If this is a bank reconciliation, beginning and ending balances should be positive, unless the account is overdrawn. If this is a credit card reconciliation, these should be negative numbers since the credit card is a liability. If the credit card account started with a balance and was completely paid off, then the beginning balance would be negative and the ending balance would be $0. 
  4. Select the GL account that represents the bank or credit card account in Accounting Seed
  5. Click Save
  6. Select the Clear/Unclear transactions screen
  7. In the lower right pane you will see all deposits, cash receipts, cash disbursements and journal entry lines in the selected date range that are not associated with another reconciliation along with a link to their individual source record. You are able to increase and decrease the date range to find more transactions.
  8. Check the transactions that have cleared in your statement. Enter the correct cleared date if different from the transaction date.
  9. Click the Clear Selected button
  10. Selecting items from the Cleared Transaction list and clicking the Unclear Selected button will send these items back to the Uncleared Transactions list
  11. The reconciliation is complete when the total cleared deposits and disbursements match your statement and uncleared amount equals zero.
  12. Click the Create and Attach Reports button to attach a PDF copy of the Bank rec and a .csv file of the other reports combined.
  13. Check the Uncleared transactions section of the reconciliation report. Any transactions created in Accounting Seed by error and did not actually happen in your bank/credit card account should be unposted and deleted.

Notes about reconciling a bank account:

  • Typically there are no uncleared deposits or cash receipts
  • Uncleared cash disbursements typically show checks to vendors that were issued, but not cashed yet.
  • The transactions exception report typically should have no entries. This is a list of all transactions booked to the cash account from a source other than the cash receipts, cash disbursements and journal entry lines.
 
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