To do a bank reconciliation you obviously need a bank statement, whether it’s one you receive in the post or have printed off from online banking. You may log on to the bank regularly to do visual checks but the formal process requires a check of the printed statement line by line.
It is advisable to do a reconciliation on a monthly basis, typically when you receive the bank statement. It is easy to miss entering a transaction or there may be entries on the bank statement that you did not have prior knowledge of (e.g. bank charges or direct debits). If there is a discrepancy you will only ever have a month’s worth of entries that may be the problem.
It's also reassuring to know that the bank statement corresponds with your accounts. At this point, you know that what you have recorded is correct in terms of actual monies in and out, and it also provides the clerk or RFO with security in case of any challenge.
To do a bank reconciliation:
Go to Bank, Reconcile
- In the drop down menu under Bank select the bank account you want to reconcile.
- In Cashed Date select the date that you want to reconcile to. This is most likely to be the date of the statement (or the date of the last item on the statement) or the end of the month if your statement date does not fall as the end of a month.
- Work through the bank statement and tick the box next to the payments and receipts that appear on the statement. You can sort the transactions by clicking on any of the column headings or filter them by typing in to the search box.
- Once you have selected all the relevant transactions click 'Save'.
- A summary will now be shown on screen with an amount that the statement should be.
- If correct click 'Open report'. A Summary report will print the summary as just shown on screen. Selecting Payments or Receipts under Detailed Listings will show a list of uncashed cheques. By clicking into Advanced you can sort by voucher number or date.
- Once the reports you require have been printed/saved you can exit the page. If you have another bank account to reconcile you can repeat the process above.
If the statement balance does not match to the balance calculated on Scribe see here: Why don't the accounts reconcile with the bank?