Bank Reconciliation

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   If you have never reconciled your bank account and have accounts out by 10s of thousands of dollars.

You need to get a reconciled balance as at a chosen starting date Then journal that in. If you have money in the bank, Debit the bank account and Credit a Capital account, Reverse if overdrawn.

I normally set up a capital account called either Opening Balances or Equity
Their accountants can chose what to do with it - if they want to move it to some other existing account.

Note that when you start doing your bank recs, there will be unpresented cheques included in the opening balance, so they will appear on the bank statements and won't have a matching entry in the bank rec screen - they just get ticked off against the opening balance entry

So it's best to pick a time where they have the least unpresented cheques eg tell them not to write any more cheques from here on and start from Jan 07 Transfers are less of a problem because they clear quickly, but they want to avoid having unpresented cheques dribbling in over a number of bank statement periods, because they won't get to zero variance until they are all in

Edited by Susmita - 16-Jan-2007 at 00:39

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peach Members Profile Find Members Posts Admin Group THE BOSS Joined: 01-Jan-2006 Status: Offline Points: 1295	Post Options Post Reply Quote peach Report Post Thanks(0) Quote Reply Topic: Bank Reconciliation Posted: 09-Jan-2007 at 23:38
	If you have never reconciled your bank account and have accounts out by 10s of thousands of dollars. You need to get a reconciled balance as at a chosen starting date Then journal that in. If you have money in the bank, Debit the bank account and Credit a Capital account, Reverse if overdrawn. I normally set up a capital account called either Opening Balances or Equity Their accountants can chose what to do with it - if they want to move it to some other existing account. Note that when you start doing your bank recs, there will be unpresented cheques included in the opening balance, so they will appear on the bank statements and won't have a matching entry in the bank rec screen - they just get ticked off against the opening balance entry So it's best to pick a time where they have the least unpresented cheques eg tell them not to write any more cheques from here on and start from Jan 07 Transfers are less of a problem because they clear quickly, but they want to avoid having unpresented cheques dribbling in over a number of bank statement periods, because they won't get to zero variance until they are all in Edited by Susmita - 16-Jan-2007 at 00:39