Reconciling bank accounts

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Bank reconciliations are required to ensure transactions recorded in your accounting system match transactions that appear on your bank statements. To ensure all your bank transactions are recorded correctly, you should reconcile your bank accounts regularly.

To reconcile your bank accounts, go to the Reports tab.

Click Bank Reconciliation Statement.

Then click the New Report button to create a new bank reconciliation statement.

Set the date you will reconcile transactions until and select the bank account.

Then click the Create button.

This will create a bank reconciliation statement to guide you through the bank reconciliation steps.

To open the statement, click the View button. Before the statement appears, you must enter the closing bank balance as per the bank statement as at the bank reconciliation date, unless you have already entered it.

After clicking the Update button on the screen, the statement will appear.

The statement will show:

  • Closing balance as per bank statement at the top (which you can still correct by clicking on the amount)
  • List of uncleared deposits and uncleared payments. If any of the deposits or payments have cleared before the bank reconciliation date, you need to click on them and enter the date they have cleared. The cleared transactions will be removed from the Bank Reconciliation Statement.
  • Closing balance as per balance sheet represents the bank balance as recorded in your accounting system.

If the figures agree, then you have reconciled. If they don’t, it will show Bank reconciliation discrepancy. To deal with the discrepancy, click on the amount.

This will take you to the screen which will help you with bank reconciliation process. First you will be asked to double-check the closing balance as per the bank statement.

If your closing balances are correct, the next section will show the list of cleared bank transactions recorded in Manager. Depending on how often you do the bank reconciliation, the list of transactions can be quite lengthy to go through.

Manager can break down transactions into smaller segments to make it easier to check against your bank statement. In order to do that, Manager will need to ask for more closing balances as per your bank statement. If Manager can break down your transactions into smaller segments, it will show the following notice:

It’s usually more efficient to keep providing new closing balances as long as you see this notice. Manager will use this information to pinpoint the specific days you don’t reconcile. Instead of checking a whole month of transactions at once, you will only need to reconcile one day at a time and only days that don’t reconcile (skipping those days that reconcile).

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When you compare transactions from the list to your bank statement, use the Edit button to correct or delete transactions as required. If a transaction is included in your bank statement but not in Manager, use the applicable Spend money, Receive money or Transfer money button to record it.

Once you resolve all issues, your Bank reconciliation statement will no longer show a discrepancy and the Status of the bank reconciliation statement will indicate Reconciled when viewing the list of bank reconciliation statements.

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Is it possible for Manager to download data directly from the bank account and reconcile automatically?

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No. The entire point of reconciliation is to look for and resolve differences between what you have in Manager and what the bank statement has. Without your judgment and intervention, Manager cannot know which is correct if there are differences.

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No, Manager doesn’t have the functionality to electronically link to your bank account and download directly. However, you can import a QIF file into Manager which has been downloaded from the bank.

Setting up Bank Rules for recurring transaction can automate some of the import process but you will still need manual review to import other transactions

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Hi, i’m trying to do my first Credit Card reconciliation and after entering the closing balance as of the statement date and clicking the Update button nothing happens. I don’t get the Reconciliation Statement page.
Any ideas what i can be doing wrong.
Cheers

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Did you edit the date first?

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By nothing what screen do you see ?
Assuming that you have gone to Reports - Bank Reconciliation and selected “New Report”
Entered the Statement Date and selected “Credit Card” from Bank Account drop down then clicked Create.
Then clicked View next to Credit Card and entered the Statement Balance and clicked Update
And this resulted in the “nothing happens”.

Have you tried clicking Edit then Delete and re-starting the report
Do you have other accounts which reconcile ok

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Hi Tut, i changed the date as of the closing balance which is 26/06/16. and entered the closing balance.
Brucanna, yes i have done all that, this is the first reconciliation report as i’ve only been using the program for around a month

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Can you show a screenshot of what you see after clicking Update.
If you have another bank account to reconcile, why not try that one by going to the Cash Account and record a matching date and balance details for that account. We will now pretend that those (date & balance) are a Statement details and then complete the above process.

It doesn’t matter that they are not an actual statement details, as the report will catch when next reconciled

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This is the screen after i click Update.

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You haven’t entered a Statement Balance - unless it was a zero balance. Click on the zero and enter the Statement Balance, being a credit card it will probably be a minus number if you owe money to it.

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No, i had it disapears when i click update.
But i just did a dummy recon with my check account and it worked.

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So with the balance entered and clicking update, does it just return to your above screenshot screen or another screen.

You could try deleting your Settings - Base Currency - AUD, that setting is only required if you are going to be using multiple currencies.

Have you tried deleting the existing report

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Yes after clicking update it returns to the above screenshot.
Does it matter if the credit card enteries are marked cleared or uncleared before reconciliation.
Yes deleted old reports

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Regarding cleared or uncleared, unsure as I have never had any uncleared transactions but I suspect it shouldn’t as they should just become listed on the Reconciliation (?).

Is the Cash Account - Credit Card balance on the Jun 26 the same as the Credit Card Statement.

I’m starting to suspect that the credit card account has incurred some data issue as your cheque account reconciled out okay therefore I’m going to suggest the following - create a new credit card account and then transfer across the transactions from the existing credit card to the new credit card account by:

  1. Go to Cash Accounts tab and add “New Cash Account” and give it a unique name.

  2. Click on the blue balance of the existing credit card account to display the transactions.

  3. Click edit next to each transaction and then select Paid from and change the Credit Card

  4. Once all the transactions have been transferred - re-attempt the reconciliation

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On my “Report Tab” there is no reconciliation statement. What should i do?

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You should read the Guide: Reconcile bank accounts | Manager.