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Perform Bank Account Reconciliation

Bank Reconciliation is a process of checking and comparing your monthly bank statement with the cash balance on the company’s bank accounts. It is wise that you reconcile your checks with your checking transactions after entering them to know that Connected Business and your bank accounts are in agreement.

RECONCILE BANK ACCOUNTS WITH BANK STATEMENTS

  1. Go to the Banking module.
  2. Reconciliation under the Bank menu. A search screen of active bank accounts and previous reconciliations is displayed.
  3. Select the bank account in the Active Bank Accounts tab to display the Bank Reconciliation Form. The statement date is set to the current date in the Statement Date field. You can change it accordingly.
  4. Indicate the statement balance amount in the Statement Balance field from the statement balance you received from your bank.
  5. Connected Business tracks the deposits, transfers, and checks connected with the bank account. Select the deposits, transfers, or checks that were cleared by checking the adjoining Clear checkbox in the Payments and Deposits grids.
  6. If there is no discrepancy between the statement balance from the bank and the values in the system (as shown in the Payments and Deposits grids’ values), you will be able to reconcile the transactions. 
  7. If the statement balance value is the same as the cleared balance, click on the Reconcile button to process. The cleared balance (seen in the Reconciled This Time field) and the Difference will display in their respective fields.

CREATE A BANK RECEIPT FROM THE BANK RECONCILIATION FORM

You can create bank payments or bank receipts from the Bank Reconciliation form for any unrecorded bank payment or receipt.

  • Click on the New Bank Payment option from the Payment section to create a bank payment or the New Bank Receipt option from the Deposits section to create new bank receipts.

 

VIEW PREVIOUS BANK ACCOUNT RECONCILIATION

  1. Go to the Banking Module.
  2. Select Banking > Reconciliation. A search list of active bank accounts and previous reconciliations will display.
  3. You will find the previous bank account reconciliations in the Recon History tab. 
  4. Select a reconciliation record in the list to display the Reconciliation Form.

 

PERFORM BANK ACCOUNT RECONCILIATION

  1. Go to the Banking Module > Bank > Find Bank. A list of available banks will be displayed.
  2. Select the bank you wish to reconcile your bank statements with. The bank form will be displayed.
  3. On the Bank Detail tab, select the OFX Setup tab. You will then be required to fill out each required field. 
  4. You can find data about the OFX information through the internet or from the bank:

    • Bank ID - Identification code relative to the specific bank detail you are editing.
    • FI ID – Financial Institution Identifier.
      FI Organization – The name of the financial institution.
    • FI URL – Financial institution URL link.
    • OFX App ID – OFX application identifier.
    • OFX App Version – The application version for OFX. 
    • Username – the username which the user inputs when logging into the bank's website.
    • Password – user’s password which the user inputs when logging into the bank's website.
  5. Save your inputs before closing the form.

MANAGEMENT OF BANK STATEMENTS

With the assumption that the user already has the bank account statements from the bank, follow the details on how to integrate the bank statements with Connected Business:

  1. Go to Banking > Reconciliation. A search screen of active bank accounts and previous reconciliations is displayed.

  2. Select an active bank account from the list. The Reconciliation Form will display.  
  • Indicate the date to which you have recently reconciled bank account statements in the Last Reconciled Date field. 
  • The statement date is set to the current date in the Statement Date field. You can change it accordingly
  • Indicate previous balance you reconciled recently through the Last Reconciled Balance field.
  • Indicate the statement balance amount in the Statement Balance field from the statement balance you received from your bank.
  • Connected Business tracks the deposits, transfers, and checks connected with the bank account. Select the deposits, transfers, or checks that were cleared by checking the adjoining Clear checkbox in the Payments and Deposits grids.

NOTE: If there are no discrepancies between the statement balance from the bank and the values in the system (as shown in the Payments and Deposits grids’ values), you will be able to reconcile the transactions.

3. After making changes from the Reconciliation Form and saving your inputs, click the Refresh button to view recently-changed Bank Payments and Deposits.

 

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