Reconcile Cash Window
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It is important to keep your Checkbook records in agreement with those of the bank. Balancing your checkbook, or reconciling cash, is important because errors can sometimes be made by your bank or yourself upon recording cash transactions. For this reason, it is strongly recommended that you reconcile cash each month.
To reconcile cash you will need your most recent bank statement.
Select Accounting - Checkbook & Reconcile then click on the Reconcile button to open the Reconcile Cash window.
Checks & Deposits grid Tools:
Reconciling your Checkbook:
The first step is to identify the Checking Account you wish to reconcile. Select the desired Checking Account on the Account menu. Next, enter the date of the bank statement in the Statement Ending Date field. The date will be provided on the statement itself.
Lastly, enter in the Statement Ending Balance as seen on your Bank Statement. Then click the Start button. Design Manager will display the Checks and Deposit information for this account.
The Checks Grid contains all of the Checks that you have written (or other Debit Card entries) that were dated on or before your statement date. Checks that have already been reconciled in an earlier month will not be shown. The bank will have indicated which Checks it has processed when you receive the bank statement. Find each of these Checks/Bank Debits on the grid and click the Clear (Clr) column to indicate that the bank has reported that Check as cleared or processed.
This column allows you to tag Check entries to see a Sum of those entries in the Sum field below the Checks grid. This is useful when you have multiple entries in Design Manager that are appearing on your Bank Statement as one Total amount. Use the Sum column to tag the entries that make up that total.
Check Sum Tools:
The bank statement will similarly list the Deposits you have made. Find the Deposits on the Deposits Grid and mark as cleared each of the Deposits on the bank statement.
TIP: As individually clearing Checks and Deposits may be tedious when numerous entries are involved, it may be found useful to use the Clear Checks and Deposits Window by clicking the Clear Checks and Deposits button to quickly mark entries cleared based on a variety of criteria.
If the majority of your Checks and Deposits clear in a banking period, you can use the Clear All button to mark all entries on both the Checks and Deposits Grids as cleared. Then simply unclear the entries that do NOT appear on your bank statement. This process may be faster then clearing each Check and Deposit manually!
This column allows you to tag Deposit entries to see a Sum of those entries in the Sum field below the Deposits grid. This is useful when you have multiple entries in Design Manager that are appearing on your Bank Statement as one Total amount. Use the Sum column to tag the entries that make up that total.
Deposit Sum Tools:
You may also have received service charges from the bank. They will also be listed on the bank statement. To enter these charges you should click the Edit Service Charges button to the right of the Service Charges field. The Service/Finance Charges Window will appear.
Click the Add button to the right of the Service Charges Grid to display the Service/Finance Charges Distribution Window on which you may enter the dollar amount of the service charge as well as the General Ledger Expense Account to which it should be recorded. As you enter these charges the total amount will be updated in the Total Service/Finance Charges field. When you have entered all of the charges, this number should agree with the dollar amount of service charges on your bank statement.
Click OK on the Service/Finance Charges Window and you should see the service charge amount appear in the Service Charges field on the Reconcile Cash window. The entry on the Payments Grid for the service charge will also be marked as cleared.
Your bank statement may include a total for the checks and service charges and a total for the deposits and interest that it is reporting. If so, you can check your work by comparing the total for the Checks in the Total Cleared Checks field. You should also compare the total for the deposits to the Total Cleared Deposits field.
When your Total Cleared Deposits, Total Cleared Checks, and Service Charges all agree with your bank statement, you can review the right panel to see the Totals. Design Manager will then deduce the Calculated Book Balance by adding any outstanding deposits and subtracting outstanding checks to indicate the amount that should be in your Checking Account according to the bank.
The Calculated Book Balance will be compared to the current balance of the Checking Account in Design Manager in the Computer Balance field. Any difference will be shown in the Difference field.
When The Bank Statement Balances! appears, everything is in agreement and you are finished.
It is recommended that you click the Print button to print a copy of the reconciliation for your records.
To print out the Cleared entries as well as the outstanding entries, choose Yes (This option is NOT available upon reprint).
Once the document has printed, you can click the Accept button at the bottom of the Reconcile Cash window to indicate that the reconciliation is complete and correct.
If there is a difference, you will need to re-examine your work. Be sure that all of the common reconciliation issues mentioned below have been reviewed. You can utilize the Transaction Search to look for specific entries that make up your difference. Make any corrections necessary to make the Bank Statement balance. Once balanced, Print and Accept your Reconciliation.
Common Reconciliation Issues:
If the totals in Design Manager do not match the totals shown on the bank statement, then one of the following problems may have occurred: