How to read your Bank Reconciliation report?

In the Bank Reconciliation report there are three balances which you need to take note of:

  • Beginning Balance
  • Cleared Balance
  • Register Balance

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Beginning Balance is your physical bank opening balance.  In your Bank Statement usually will show as Opening Balance or Balance brought forward.

Cleared Balance is your physical bank closing balance. In your Bank Statement usually will show as Ledger Balance or Balance carried forward.

Register Balance is your Balance Sheet ending balance. You are able to see this balance figure in either your Balance sheet or Bank Register.

Usually the amount in Cleared Balance will not be the same as the Register Balance. This is because of the un-presented cheque (cheque recorded in your QuickBooks but bank have not clear this cheque) or un-presented deposit (deposit recorded in your QuickBooks but bank have not clear this transaction).

When doing your Bank Reconciliation, this month’s Cleared Balance will be your following month’s Beginning Balance. 

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