Hi, my bank statements run from the 5th of the month so i know my starting balance as of 5th of April, however, my accounts run from 1st of April and i can see a running balance on my bank statement for the 27th of mar, is there a logical way to accurately get to grips withthese different dates and balances so i can reconcile my accounts?
thanks in Advance
I assume you are referring to the balance on the date you began using Manager. Have you read the Guide: Manager Cloud? The starting balance for a bank account should be the cleared balance according to your bank on that date. Especially see the section on pending bank transactions at the end.
Well I started using manager for the new financial year commencing April 1st, so I have sales and outgoing from that date, but the bank statements run from the 5th, so in terms of inputting a start balance I assumed I should start with the closing balance on April 5th, should I have started on zero and adjusted accordingly later?
I suppose what is asking is how do I know what the actual balance is on April 1st, I know it on April 5th and on the previous date of march 27?
What was the closing bank balance from your old system? That is the starting bank balance in Manager
I don’t know what you mean by this. Can you elaborate?
Since you are entering information from the past, you can look at your bank statement covering that period and see which transactions had cleared as of April 1st. From that, you can determine the balance, even if it is not shown explicitly on the bank statement, as it usually is. Any transaction that had not cleared by that date must be entered as a pending withdrawal or deposit, dated on the date it originally occurred. Then you enter a clearing date for the later date when the transaction actually shows up on the statement.
Regarding first question I thought perhaps if I assumed a start balance of zero and in subsequent reconcillilations were all out by the same amount I could work out the true start balance
Following your answer I think I am taking the closing balance on the 5th too rigidly as some sort of accounting law that I must be followed, but I was confused by exactly how to ascertain the balance on a given date (the first) I will try to work it out, thanks for your help
Good question, I guess the accountant would know but I just assumed it would be the opening balance on bank statement (I’m learning to do the accounts anew and didn’t have anything to do with last financial year)
This would only be true if the dates are the same, which you’ve said they are not.