TItle Page
hontreasurer.com
  (incorporating honsecretary.com)

The Integrated Membership & Bookkeeping system for Charities, Clubs & Societies
  © 2006, 2007 hontreasurer.com
Search this site  |  Site map
Click for Larger Text
Click for Smaller Text





TUTORIAL - Bank Reconciliation

Tutorial Index Main Contents:

Welcome
Introducing hontreasurer.com
Online Manual
How Do I?
HELP! - I'm Stuck!
TUTORIAL
The Forum
TO DO List

TUTORIAL Contents:

Introduction
Preferences
> Setup
> Roles
> Users
Activity Names
Accounting Categories
Activities
Accounts
Statuses
Members (Contacts)
Posting
> Cheque or Cash Received
>> Against Invoice
> Cheque Written
>> Against Invoice
> Cash Paid
> Cash from Cash Account to Bank
> Cash from Bank to Cash Account
> Cash Banked
> Bank Transfer In
>> Against Invoice
> Bank Transfer Out
>> Against Invoice
> Account Transfer
> Bank Interest Received

> Opening Balances
> Opening Income & Expenditure

> Invoice Sent
> Invoice Received

The Bank Reconciliation

Transaction Enquiry
Balance Enquiry

The Year End

Reporting

Submit a Question ..
we'll do our best to answer it!

< Previous Page Next Page >
You have the Bank Statement for an account - assume the current account for the time being but they are all the same. What we would like to do is to reconcile the transactions we have posted on that account with the Bank Statement.

Choose Transactions/Reconciliation from the main menu. Choose the account you wish to reconcile from the first list. If, before you go any further you press Show Totals, you will see how much are the transactions you have not yet reconciled and how much you have. Now enter the first cheque or payin number on the statement in the Cheque/Payment Number box. Put the Bank Statement Sheet number into the Bank Statement Number Box. The amount of the unreconciled transaction should be shown. Press Auto-Reconcile. The transaction will be reconciled and the totals updated. That's it. Continue with the next transaction until all on the statement have been dealt with.

Now there will be a number of exceptions:

There is no reference number on the statement for a telephone or internet transfer.
 There is no easy way round this. You have to find the transaction by using Show/Reconcile Transactions. This will show unreconciled transactions by default so the one you are looking for should be there. You can toggle between unreconciled transactions and transactions reconciled to this Bank Statement by pressing Show/Hide Reconciled Transactions. When you have the one you want, press Reconcile and Exit.
There is an item on the statement that does not appear in your transaction list.
 This may be a bank error but unfortunately they don't often make mistakes! It may be a Standing Order or Direct Debit that you have missed.
There is an item in the transaction list which you know will never be paid in - or example the cheque has been torn up.
 Two choices here - either delete the original transaction - or mark the transaction "Will Never Be Reconciled" on the Manual Reconciliation Screen. This will ensure it is ignored by the Bank Reconciliation Report.
The end of your financial year is in the middle of a statement.
 This often happens because Bank Statements are hardly ever produced at month end and financial year always (as far as I know) end at the end of a month. (Except possibly Tax years.)

Here you need a rather special action. Call up the last statement by putting the Sheet number into the reconciliation screen and nothing in the Cheque/Payment box. Press Manual Reconciliation and then Show Reconciled Transactions. Now look at the Bank Statement and for all the transactions which went through the bank before the year end date, select and press "Not Outstanding At Year End" An asterisc will appear beside that transaction and it will NOT be listed on the Bank Reconciliation Report.

At the end, check the Bank Statement by running Reports/Bank Reports/Bank Statement report for the account and sheet in question. Note that the order will not necessarily be exactly that on the statement.

Next run Reports/Bank Reports/Unreconciled Transactions and check that none of those are on the statement.

Lastly run Reports/Bank Reports/Statement Page In/Out Report which totals the incoming and outgoing transactions on each sheet. Many banks provide a summary to check this against.

Lastly, do a Bank Reconciliation Report by typing in the Sheet number and the total at the bottom of the last sheet.


< Previous Page Next Page >