Bank Reconciliation

The Bank Reconciliation module is designed to make the reconciliation process quick and easy. The reconciliation process can be used to reconcile each bank account in the General Ledger. Pak Accounting compares the cash balance in the General Ledger, the bank statement you enter in, and the Check History to make sure all 3 of these are in balance. If not, the module provides reports to help you research where the problem is.

It’s good to note that Bank Reconciliation will help you find problems, if they exist, but it will not necessarily solve those problems. Once a problem is located, you will then need to channel your inner Sherlock Holmes – what is that entry, where did it come from, when or where does it belong? Then, based on that information, what is the best way to correct it? Those answers and solutions cannot be provided in this module but typically in the module the entry was created in.

BANK RECONCILIATION STEPS:

Step 1. Bank Account Master Maintenance Setup

Before you can reconcile your bank statement, complete the one-time setup of the Bank Account Maintenance. (Should already be set up for use with check writing and deposits.)

Step 2. Start the Reconciliation Cycle

Each month, when you receive a bank statement, you can start a cycle. Enter the information from your bank statement on the screen, including the number and amount of checks and deposits cleared. See Starting the Reconciliation Cycle for more detailed information.

Step 3. Clear or Void the Checks

Next, tell the system which checks have cleared (or have been voided). Use either Clear/Void Checks by Check Number Range, or Clear/Void Checks by Tagging from the Reconciliation Cycle Menu. Using your bank statement, mark the checks that have cleared the bank. See Clearing Checks. NOTE: Void checks in the sub-system that created the check.

Step 4. Reconcile Statement

This step starts with the amount from the bank statement and adds outstanding checks while subtracting outstanding deposits to arrive at the amount that should match the general ledger for that date. If the amounts do not balance, print a listing to help track down errors. When this screen shows all amounts balancing, the statement cycle is automatically marked "Completed" and "In Balance" and you are ready to reconcile the next month's statement.

See Reconciling the Bank Statement.

Step 5. Finding problems with Deposits and Checks

Deposits - This compares the deposits cleared on the bank statement with the deposits recorded in the general ledger. If the deposits are out of balance, check the last several deposits recorded in the general ledger and compare them against the bank statement.

Checks - This step compares the amount of checks on the system to the amount on the statement. There are two parts to compare: The cleared section compares the dollar amount of checks cleared on the bank statement to the checks you marked cleared in the reconciliation file. If the items you marked match the amount cleared, this amount will be in balance. The written checks section compares the amount of checks that were written and are still outstanding from the bank reconciliation check history with the amount in the general ledger.

See Finding problems with reconciliation.