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How to set up your first bank reconciliation

Notes

The initial bank reconciliation procedure needs to be done for each bank account that had uncleared transactions as at the first day of your conversion month.

Step 1.

Identify uncleared withdrawals and deposits.

Compare your banking source information (such as your chequebook and deposit book) with your bank statements for the period that includes your conversion date. If you find transactions that have not been cleared by your bank as at this date, you will need to record the details of these transactions in your company file.

For example, in June, the month prior to your conversion month, you wrote a cheque for $1,000 and deposited $500 you received from a customer. If these transactions had not appeared on a bank statement by 30 June, you need to record both transactions in your company file.

Step 2.​ Record uncleared withdrawals and deposits

You need to record uncleared transactions in such a way that the opening bank account balance is not affected. To do this, you need to post a debit and a credit of equal amounts for each transaction against the applicable bank account.

To enter uncleared withdrawals

1. Go to the Banking command centre and click Spend Money. The Spend Money window appears.

2. In the Pay from Account field, type or select the bank account you want to reconcile.

3. In the Cheque No. field, enter a reference number for the withdrawal.

4. In the Date field, type the first day of your conversion month. For example, if your conversion month is January 2015, enter 01/01/15.

5. In the Amount field, type the amount of the withdrawal.

6. In the Acct No. field, type or select the bank account you want to reconcile. This must be the account entered in step 2.

7. In the Tax field, select the N-T tax code.

8. Click Record.

9. Repeat from step 3 for each uncleared withdrawal. To enter uncleared deposits ​1. Go to the Banking command centre and click Receive Money. The Receive Money window appears. 2. In the Deposit to Account field, type or select the bank account you want to reconcile. 3. In the Date field, type the first day of your conversion month. For example, if your conversion month is January 2015, enter 01/01/15. 4. In the Amount Received field, type the amount of the deposit. 5. In the Acct No. field, type or select the bank account you want to reconcile. This must be the account entered in step 2. 6. In the Tax field, select the N-T tax code. 7. Enter details of the deposit in the Memo field. 8. Click Record. 9. Repeat from step 3 for each uncleared deposit. Step 3. To reconcile the account 1. Go to the Banking command centre and click Reconcile Accounts. The Reconcile Accounts window appears. 2. In the Account field, select the bank account you want to reconcile. 3. In the Closing Statement Balance field, enter the closing bank balance as at the day prior to your conversion month (for example, the closing balance as at 31/12/2014). 4. In the Bank Statement Date field, enter the first date of your conversion month. (For example, if your conversion month is January 2015, enter 01/01/15.) Your uncleared transactions appear. When you recorded uncleared transactions, the same account was debited and credited. Therefore, an uncleared transaction appears as both a deposit and a withdrawal. 5. For each uncleared withdrawal, click the select column next to the deposit .6. For each uncleared deposit, click the select column next to the withdrawal. When each uncleared transaction is selected, $0.00 appears in the Out of Balance field. 7. Click Reconcile. A confirmation window appears. If you want, do one of the following: i. To print a report, click Print Report. When the report is printed, click Reconcile. ii. To reconcile without printing a report, click Reconcile. iii. To change any details you entered in the Reconcile Accounts window, click Cancel and make the required changes.


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