Bank Reconciliation - An overview

BA Icon

Bank Reconciliation - An overview


Bank Reconciliation is applicable to the Trust Accounting and Office Accounting modules. At the end of each month the ending cash balance as reported on the bank statement should be reconciled with the ending cash balance as per the books of the original entry. A Bank Reconciliation is the statement that reports this difference.

A Bank Reconciliation will include a list of outstanding checks, outstanding deposits and any bank errors as well as a summary of transactions. Generally there will be a difference between the bank and the books. For example there may be deposits or checks in transit, bank charges or interest allowed by the bank.

The general process for completing your bank rec is to:

1. Clear receipts that show as cleared on your bank statement
2. Clear checks that show as cleared on your bank statement
3. Click the Print icon, input the Balance per Bank Statement
4. Print the Bank Rec report if "In Balance". If not in balance, check cleared items and make any necessary entries to reconcile.

 

 

 

A few tips if you bank rec does not balance:

1. Check the Cleared Rcpts tab > Cleared sidetab and note the total of the cleared receipts. This total should match the cleared receipts total on your bank statement. If it does not, you have incorrectly cleared all the receipts or missed an item.

2. Check the Clear Chks tab > Cleared sidetab and note the total of the cleared checks. This total should match the cleared checks total on your bank statement. If it does not, you have incorrectly cleared all the checks or missed an item.

3. Note the Cleared Date. A common mistake is to have the Month End date set incorrectly. If you clear items as at the wrong month end, you cannot balance. If you clear items as at the wrong date, unclear them, reset the month end date and clear the items again.

4. Reprint the prior month's Bank Rec. Try reprinting a copy of the last month's bank rec that was in balance. If it is now out of balance, it means something happened to an old entry that is affecting the balance forward in the current month. This could be an incorrect posting or reversal into a prior period, or it could mean you have a corrupt record in your database and it requires maintenance. If a prior month's bank rec no longer balances, report the information to Brief Legal Software to review your data.


 



 

Have more questions? Submit a request

0 Comments

Article is closed for comments.
Powered by Zendesk