The Bank Reconciliations tab helps you confirm that all the transactions in your bank account, as recorded by the software, match those on the actual bank statements provided by your bank. This process verifies that each transaction on your bank statement is accurately recorded in your accounting software, ensuring that your financial records are both precise and comprehensive.
To create a new bank reconciliation, click on the New Bank Reconciliation button.
The Bank Reconciliations tab features several columns that provide important information about your bank reconciliations:
The Date column displays the date on which the bank reconciliation is being conducted. This date corresponds to the closing date of the bank statement you are reconciling.
The Bank Account column shows the bank account that is currently undergoing reconciliation.
The Statement Balance column displays the closing balance entered from the bank statement for the bank account, corresponding to the date specified in the Date column.
The Discrepancy column shows the difference between the Statement Balance you entered and the sum of all cleared transactions up to that date in your accounting software. If the bank statement balance matches the calculated sum, there is no discrepancy, and this column will show a zero balance.
The Status column indicates the reconciliation status of the bank account as of the specified date:
You can customize the visibility of columns in the Bank Reconciliations tab to suit your preferences. Use the Edit Columns button to show or hide columns as needed.
For more information on customizing columns, see Edit Columns.
By regularly reconciling your bank accounts using the Bank Reconciliations tab, you ensure that your financial records are accurate and up-to-date, allowing for better financial management and reporting.