It is important to keep your Checkbook records in agreement with those of the bank. Balancing your checkbook, or reconciling cash, is important because errors can sometimes be made by your bank or yourself upon recording cash transactions. For this reason, it is strongly recommended that you reconcile cash each month.
To reconcile Checkbook Accounts, the most recent bank statement will be required. On the left side menu, click on Accounts Payable and then Checkbook. Next, click on the Reconcile button in the top right. Select the Checkbook Account you want to reconcile, enter the Statement Date and Statement Ending Balance. Finally, click the Start Reconcile button.
You'll see a list of all the checks and deposits that you have entered into Design Manager that were dated on or before your Statement Date and were not listed previously Cleared or already reconciled.
At the top of the Checkbook Reconcile, you'll see:
Statement Balance: the balance you entered from your bank account statement
Deposits in Transit: deposits entered towards your Checkbook that have not been marked as cleared
Outstanding Checks: checks entered towards your Checkbook that have not been marked as cleared
Balance: the sum of the statement ending balance and outstanding checks less deposits in transit
Computer Balance: the net amount of the Checkbook as of the Statement Date
Difference: the difference between Balance and Computer Balance
Under this section and above the list of checks and deposits, you'll see a summary of Total Outstanding (includes Checks and Deposits entered into Design Manager), Total Cleared (this will update as you mark checks and deposits cleared) and Total Selected (this will update as you select checks and deposits in the list below)
Your bank statement will list each transaction that was processed according to the financial institution. Find each of these transactions in the reconciliation grid and select by clicking the box in the far left column of checks and deposits. As you select transactions to be cleared, you'll see the Total Selected field change with your selections.
Once all transactions have been selected, click the Mark Cleared button on the right side above the transactions grid to indicate that the transactions are present on the statement.
As the transactions are marked as cleared, you can see the Total Cleared field change to reflect the new amount. Once cleared, you can review these transactions by clicking on the Cleared tab at the top left. In the Cleared tab, you can mark any transaction as Uncleared in case you made a mistake. This will move the transaction back to the Outstanding tab.
As you clear transactions, you can review the top panel to see the Totals. Design Manager will then deduce the Balance by adding any Outstanding Checks and subtracting Deposits in Transit to indicate the amount that should be on your Checkbook according to the bank.
The Balance will be compared to the current balance of the Checkbook in Design Manager in the Computer Balance field. Any difference will be shown in the Difference field.
When the difference shows as $0.00, everything is in agreement and you are finished.
You can get create a Checkbook Reconciliation Report which will show all cleared entries by clicking on Get PDF.
Finally, you can click the Accept Reconciliation button at the top right to indicate that the reconciliation is complete and correct.
If there are checks and deposits that are not on the list and you know what these transactions are, you can enter the checks and deposits. Design Manager will save your progress for any transactions you have already cleared. If there is a difference, you will need to re-examine your work. Be sure that all of the common reconciliation issues mentioned below have been reviewed. You can utilize the Transaction Search to look for specific entries that make up your difference. Make any corrections necessary to make the Bank Statement balance. Once balanced, Get PDF and Accept your Reconciliation.
Common Reconciliation Issues: If the totals in Design Manager do not match the totals shown on the bank statement, then one of the following problems may have occurred:
You may have neglected to click Clear for one of the Checks or Deposits shown on the statement. In the same vein, it is also possible that you accidentally cleared a Check or Deposit that was NOT listed on your statement. If so, go to the Cleared tab and remove the check mark by clicking it again
You have a Check or a Deposit with an amount that differs from the amount that the bank is reporting. Look at each Check and Deposit that you have cleared and make sure that its amount matches that shown on the bank statement. If you find a difference, you can correct it in Design Manager if the transaction has been entered erroneously or else you will need to contact your banking institution if they are in error
You failed to enter a Check or Deposit at all
The wrong Bank Statement Ending Date was entered
After you have accepted the reconciliation, you can see a list of past reconciliations by clicking on the Reconciliation History button at the top of the Checkbook Reconcile page. You'll see a list of reconciliations and can delete the reconciliation by clicking on Void. When you void the reconciliation, you can go back and reconcile the period again. Note: You can only void the most recent reconciliation period. If multiple periods need to removed, just void each one in turn.
Service Charges
You may have received service charges from the bank. They will also be listed on the bank statement. To enter these charges, you would enter an Operating Expense paid by your bank account that you are reconciling. Click here to learn how to enter a Vendor Deposit, Vendor Invoice or General/Misc Bill. After you have added this service charge, you can return to the Checkbook Reconcile and you'll see the new transaction added and can mark it cleared to match your statement.