Bank Reconciliation


D

Derek

I've checked through the discussions and the issue has been raised before but
seems to remain unanswered.

We're using Accounting Professional 2008.

Question: should the nominal account for the current bank account match our
bank statement? On the "reconciliation detail" report, the "ending balance"
should match our bank statement. It matched on the first reconciliation but
does not match on subsequent reconciliations; we're not seeing the previous
opening balance and can see no reason why they don't match.

Any help would be appreciated!
 
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A

Agbi Bajrushi

Hi Derek,

I haven't used this feature much if Office Accounting, but I thought I might
try to help out. Are there any outstanding checks in your register that
haven't been reconciled in the period? That might cause the balances to be
off. I don't know if MOA makes an adjusting entry to balance out the account
(quickbooks online did when we were using it).

Hope that is helpful.
Agbi Bajrushi
 
D

Derek

Agbi - Thank you for your reply. My book keeper (who is used to Sage) feels
that all items have been correctly entered and can see no logical reason why
the two figures should not balance - all very confusing, even from my scant
accounting knowledge.
 
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A

Agbi Bajrushi

It's not that you made any errors. When reconciling it is important to
understand that your account register in accounting shows transactions
(specifically checks) that the bank hasn't yet cleared. For instance, if you
issue a check on 3/31 and have to mail it to Japan, it could take 10 days
until the bank records those funds as being issued to the your vendor, but
your accounting system shows that they are unavailable when the check is
written.

My point, is that it is possible that you wrote a check one month that
didn't cash during that months statement period which is why the balances are
off. Again, I don't know what Microsoft accounting does to adjust for that
because I don't use that feature (I have been reconciling transactions as
they are entered or when checks clear the bank). When I used to use
Quickbooks Online, it would make an adjusting entry to offset the difference
in the balances (which in retrospect is bad because it gives the impression
that there is more available cash than there really is).

I hope that cleared up my point, and was helpful.

Agbi Bajrushi
 

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