Reconciling a Bank Account

Eddie Davis -

It’s a good idea to periodically reconcile bank accounts to ensure the balance in FINSYNC matches your actual bank balance. FINSYNC is where all of your accounting happens, including the recording of money received and money spent. Your bank account is where the cash transaction portion of that activity happens. For a variety of reasons, there may be entries in FINSYNC that aren’t found in your bank account, such as a check that hasn’t yet been cashed by a vendor. And transactions may exist in your bank account that have not yet been recorded in FINSYNC.

Reconciling a bank account

1) Select the Banking tab and choose the account to reconcile.

2) Select Reconcile > Start New to begin a new reconciliation.

StartNew.png

Grab your latest bank statement. You’ll be comparing everything in your FINSYNC bank account with everything in your actual bank account up to the end date on the bank statement. If this is your first time reconciling in FINSYNC, you'll want to be sure the beginning date of your bank statement is the date you began using FINSYNC. If you perform a reconciliation each month, for example, your bank statement should begin on the first day of the month being reconciled, and end on the last day.

3) Enter the end date of your bank statement into the Bank Statement Date field. This ensures transactions in FINSYNC that are more recent than your bank statement won't appear in the list below.

4) Enter the ending balance from your bank statement into the Bank Statement End Balance field. This is the balance of your bank account as of the statement end date.

DateAndBalance.png

Now you're ready to begin reviewing all of the transactions on your bank statement to ensure they also exist in FINSYNC.

5) For each transaction that appears on your bank statement, check off the Cleared checkbox for the corresponding transaction in FINSYNC. The Date Cleared for that transaction will default to the bank statement date, but you can change it.

 

What does "Cleared" mean?

A "cleared" transaction is one that has been posted to your bank account, whereas a "pending" transaction is one that has been recorded in FINSYNC (you wrote a check), but has not yet cleared the bank (check hasn't been cashed).

Many transactions may already be marked "Cleared" and have a cleared date when you begin the reconciliation because they were imported from your bank account or someone already marked them as cleared in the FINSYNC bank account register.

 

6) As you mark transactions as cleared, you'll see the Difference value in the upper right change. The goal is to get this number to zero, indicating there is no difference between the balance of your bank account and your balance in FINSYNC as of the bank statement date.

Tip: If you're reviewing a lot of transactions, use the Cleared Status, Transaction Date Range and Cleared Date Range filters to help you find what you're looking for. These filters don't affect the calculations or outcome of the reconciliation.

7) After marking all transactions from your bank statements as cleared in FINSYNC, there may still be a Difference value that is due to unrecorded bank fees or interest. Click the Apply Adjustment button to create an adjusting transaction to account for that difference.

Tip: To account for a Difference value that is more than just bank fees or other trivial amounts that can be adjusted, you may need to review your bank register or reports in FINSYNC, then come back to complete the reconciliation. To do this, click the Finish Later button to save your progress.

8) When your reconciliation is complete and your Difference value is zero, congratulations! You're ready to click the Finish button. This will mark all cleared transactions as reconciled, preventing them from being edited. 

9) Upon completing your reconciliation, you'll be presented with a report of all the transactions included in the reconciliation. One such report for each reconciliation will be saved in FINSYNC for future reference or to share with your accountant.

10) The Reconciled or Ending Balance from your last reconciliation will become the Beginning Balance for your next one. At that time, you'll see a list of all unreconciled transactions in FINSYNC up to the bank statement date. This may include transactions that fall into the prior reconciliation period, but which had not cleared the bank at the time of your last reconciliation. For example, you mailed some checks on May 30th and then reconciled the account for May a week later. Those checks hadn't cleared the bank by May 31st, your bank statement date. Next month, on July 2nd, you reconcile the month of June. Those May 30th checks cleared your bank on June 6th and are part of the June reconciliation.

Have more questions? Submit a request

0 Comments

Please sign in to leave a comment.