How do I reconcile a bank account?
All transactions eg. cheques written, money withdrawn, deposits made and bank charges and interest incurred, should be recorded in Cashbook and then 'matched' with the bank's records (ie. a bank statement). This matching process is called reconciling.
Reconciling your accounts is a essential to ensuring the accuracy of your Cashbook accounting records.
It is recommended that reconciliations be performed on a monthly basis or more often if required.
If this is your first time reconciling your bank account:
1. Make sure you have added all your transactions and your opening balance is correct. (ie. your opening Cashbook balance is the same as the opening balance of your bank statement.)
2. Set the frequency of reconciliations:
(Note. If set as Never, all transaction entered will automatically be ticked like they are reconciled. They are not reconciled. Having these ticked just allows you to do Year-End Processing.)
To reconcile a bank account: