Reconcile bank accounts

Bank reconciliation is the process of verifying your records of transactions posted to bank accounts against records of the institutions. (The term bank is used generically to refer to any institution from which you receive or can obtain statements, whether by mail or electronically.) To avoid potential problems caused by undiscovered errors, you should reconcile your bank accounts regularly.

Enable the Bank Reconciliations tab

Before a bank account can be reconciled, the Bank Reconciliations tab must be enabled. Click Customize below the left navigation pane, check the box, and click Update:

If you had bank reconciliation reports prior to the addition of the Bank Reconciliations tab to the program, the tab will already be enabled. All past reconciliation reports will be present.

Reconcile a bank account

Go to the Bank Reconciliations tab and click New Bank Reconciliation:

Define the reconciliation:

  • Set the Date to which you will reconcile transactions, usually the date of the statement.
  • Choose the Bank account from among those already defined.
  • Enter the closing Statement balance.

Click Create to save the reconciliation. The reconciliation will appear in the Bank Reconciliations tab list.

Successful reconciliation

If Manager’s figures agree with the bank statement, the status will show as Reconciled. Click View to see the reconciliation:

The reconciliation will show:

  • Closing statement balance at the top
  • Pending deposits and pending withdrawals
  • Adjusted closing balance
  • Discrepancy (which should be zero)

Unsuccessful reconciliation

If the figures disagree, the status will show as Not reconciled. Click on the blue figure in the Discrepancy column:

Manager will show you a screen to help with the bank reconciliation process. Exact contents of this screen may vary, depending on the problem detected. You will first be asked to double-check closing balances as per the bank statements:

You may be asked to asked to confirm status of pending transactions:

If you make corrections, Manager’s suggestions may change. If the problem does not resolve, you may be presented with a list of transactions since your last reconciliation:

Depending on how often you reconcile, the list of transactions can be quite lengthy. Manager might break down the transactions into smaller segments to make it easier to check against your bank statement. To do that, Manager may ask for interim closing balances as per your bank statement.

It is usually most efficient to keep providing new closing balances as long as you are asked for them. Manager will use this information to pinpoint the specific days you don’t reconcile. Instead of checking a whole month of transactions at once, you will only need to reconcile one day at a time and only days that don’t reconcile.

When you compare transactions from the list to your bank statement, use the Edit button to correct or delete transactions as required. If a transaction is included in your bank statement but not in Manager, use the applicable New Receipt or New Payment button to record it.

Once you resolve all issues, Status of the bank reconciliation statement will indicate Reconciled when viewing the list of bank reconciliations.

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