Bank Reconciliation

Software: MoneyWorks #accounting software

Bank Reconciliation is a process of matching the transactions and balances in the ledger against the Bank Statement and ensure consistency between the two.

You should use the bank reconciliation feature in the accounting software to reconcile the bank account and NOT manually reconcile the bank with your spreadsheet or manual cash book, as the objective of reconciliation is partly to discover data entry error such as “error of original entry” and “error of omission”.

An error of omission occurs due to an accounting entry is omitted, such as a bank service charge has forgotten to record in the book. Whereas the error of original entry is when a wrong figure has recorded. For example, you have paid $132.20 for the utilities but recorded as $123.20.

From the Command menu of the MoneyWorks accounting software, select Bank Reconciliation to start the reconcile process.

bank reconciliation

Enter the statement date and closing balance of the bank account, which you like to reconcile, and ensure the opening balances are the same in both Bank Reconciliation page and the Bank Statement. Then, select the payments and receipts from the Bank Reconciliation page which have presented in the bank statement. Print a Bank Reconciliation report once bank reconciliation matches the bank statement (the difference will be zero) and clicks the Finish button to complete the bank reconciliation.

 

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