Bank and Credit Card Reconciliation
The Bank Reconciliation feature in Accounting Seed is a tool to verify that all transactions in your bank or credit card account are recorded in the general ledger as cash receipts, cash disbursements, and journal entry adjustments. This can be used for both bank and credit card reconciliations. You will need your statement for the date range selected in the new reconciliation screen to perform this exercise. In the reconciliation you are able to clear four types of transactions:
- Bank Deposit: a group of cash receipts
- Cash Receipt: a single cash receipt
- Cash Disbursement
- Journal Entry Lines
Creating a Bank or Credit Card Reconciliation
Summary of Steps:
- Navigate to Accounting Home and under Banking, click Bank Reconciliations.
- Click the New Bank Reconciliation button.
- Enter the following four fields of information from your statement:
- Start Date
- End Date
- Beginning Balance
- Ending Balance
- Note: If this is a bank reconciliation, beginning and ending balances should be positive, unless the account is overdrawn. If this is a credit card reconciliation, these should be negative numbers since the credit card is a liability. If the credit card account started with a balance and was completely paid off, then the beginning balance would be negative and the ending balance would be $0.
- Note: Effective with our Echinacea Release, Accounting Seed supports foreign currency bank and credit card reconciliations. This step applies only to the clients who have multi-currency enabled in Accounting Seed and have foreign currency bank and credit card statements.
- Click the Create and Attach Reports button to attach the PDF report of the bank reconciliation.
- Note: Accounting Seed recommends as best practice that the completed bank reconciliation PDF be saved and attached to the Bank Reconciliation record prior to completing the next subsequent period reconciliation. The PDF report generated contains a list of the current uncleared transactions in the system at the time the report is generated.
Reconciling a Bank Account Notes:
- Typically there are no uncleared deposits or cash receipts
- Uncleared cash disbursements typically show checks to vendors that were issued, but not cashed yet.