A bank reconciliation is a process of reconciling the Cash Book account (GL) with the Bank Statement. It is a process of picking the discrepancy between the two, such as omission error, typo error, duplicated transactions, etc..
Occasionally you may make a mistake when reconciling and require to revert the processed reconciliation. To do it, you have to click the ‘Load Old’ button from the Reconciliation window of the MoneyWorks accounting system and select the month of reconciled data to clear. Assuming you have reconciled five months from Jan to May, it will undo the reconcile from March to May if you selected March from the reconciled list. Once the reconciled detail loaded, click the gear icon and select ‘Clear all reconciliations from this month’ option. Proceed to reconciliation again once wrongly reconciled data has cleared.
Software: QuickBooks Desktop Software
You can print the Bank Reconciliation report, both summary and detail, immediately after you have done the reconciliation.
The Bank Reconciliation report consists of Beginning Balance, Cleared Balance (actual bank balance), Register Balance (ledger balance), and transaction list of both cleared (presented) and uncleared transactions (available in the detail report).
QuickBooks Premier and above version does keep a copy of the previous reconciliation reports at the Report menu (you can find the Previous Reconciliation report under the Banking sub-menu), whereas the QuickBooks Pro version only has the last reconciliation report. Besides, you have an option to print the previous reconciliation report to include ‘Transactions cleared at the time of reconciliation (PDF)’ or Transactions cleared plus any changes made to those transactions since the reconciliation’; these reports come handy when you have forgotten to print after reconcile or there is a discrepancy.
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Software: Intuit #QuickBooks Desktop #accounting software
The ledger balance of the bank account as at the last financial year-end closing can be use as the opening balance of the bank account in QuickBooks, or derive the opening balance from the closing balance of the bank statement and record the un-presented cheque and deposit separately. Most accountants preferred the second method as it allows the accountant to reconcile the bank easily on the following month.
If the ledger balance has used instead of the bank statement balance and discovered an un-presented cheque has not cleared during the bank reconciliation, then a general journal is required to reverse the bank’s opening balance.
Pass a general journal to debit the bank account of the un-presented cheque amount and credit the bank account again with the same value. This journal is to segregate the un-presented cheque from the bank’s opening balance.
In the bank reconciliation page, you have to check the opening balance entry and the deposit which you have recorded via the journal. The un-presented cheque which is the credit entry of the journal will leave in the payment window until it has cleared.
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