Reconcile Cash Window

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It is important to keep your Checkbook records in agreement with those of the bank.  Balancing your checkbook, or reconciling cash, is important because errors can sometimes be made by your bank or yourself upon recording cash transactions.  For this reason, it is strongly recommended that you reconcile cash each month.

 

To reconcile cash you will need your most recent bank statement.

 

Select Accounting - Checkbook & Reconcile then click on the Reconcile reconcileButton button to open the Reconcile Cash window.

 

checking - rec cash tab

 

Checks & Deposits grid Tools:

 

tag button small Mark multiple Checks and/or Deposits as cleared/uncleared. See Clear Checks and Deposits window for more information.

 

DetailsButton View the Check or Deposit Details of the highlighted entry. Also use the Deposit Details window to Split your  combined Deposits into separate deposit entries.

 

GoToSmallButton Go to the highlighted entry in the checkbook.

 

SuppressClearedButton Suppress cleared checks/deposits. Select this button to suppress the checks and/or deposits marked for cleared. This will reduce the entries on the Check or Deposits grid to show ONLY those that have not yet been marked to be cleared on this reconciliation.  It helps to clean up the grid while looking for entries to clear.

 

UnsuppressClearedButton Show all check/deposits (unsuppress).  To show all of the entries that you have cleared and suppressed, select this button.  All suppressed entries will once again appear on the Checks/Deposits grids.

 

 

Reconciling your Checkbook:

 

The first step is to identify the Checking Account you wish to reconcile.  Select the desired Checking Account on the Account menu.  Next, enter the date of the bank statement in the Statement Ending Date field.  The date will be provided on the statement itself.

Lastly, enter in the Statement Ending Balance as seen on your Bank Statement.  Then click the Start startbutton button. Design Manager will display the Checks and Deposit information for this account.

 

Clearing Checks:

The Checks Grid contains all of the Checks that you have written (or other Debit Card entries) that were dated on or before your statement date.  Checks that have already been reconciled in an earlier month will not be shown.  The bank will have indicated which Checks it has processed when you receive the bank statement.  Find each of these Checks/Bank Debits on the grid and click the Clear (Clr) column to indicate that the bank has reported that Check as cleared or processed.

 

Check Sum:

This column allows you to tag Check entries to see a Sum of those entries in the Sum field below the Checks grid.  This is useful when you have multiple entries in Design Manager that are appearing on your Bank Statement as one Total amount. Use the Sum column to tag the entries that make up that total.

 

Check Sum Tools:

To Uncheck those that are tagged for the Sum (clear the sum amount), select the SuppressClearedButton button next to the Sum field.

 

To clear all of the Summed entries use the Clear Summed Checks tag button small button.

 

To Unclear the Summed Checks - select the Reset_UnclearButton button.

 

 

Clearing Deposits:

The bank statement will similarly list the Deposits you have made.  Find the Deposits on the Deposits Grid and mark as cleared each of the Deposits on the bank statement.

 

TIP: As individually clearing Checks and Deposits may be tedious when numerous entries are involved, it may be found useful to use the Clear Checks and Deposits Window by clicking the Clear Checks and Deposits tag button small button to quickly mark entries cleared based on a variety of criteria.

 

If the majority of your Checks and Deposits clear in a banking period, you can use the Clear All button to mark all entries on both the Checks and Deposits Grids as cleared.  Then simply unclear the entries that do NOT appear on your bank statement.  This process may be faster then clearing each Check and Deposit manually!

 

Deposit Sum:

This column allows you to tag Deposit entries to see a Sum of those entries in the Sum field below the Deposits grid.  This is useful when you have multiple entries in Design Manager that are appearing on your Bank Statement as one Total amount.  Use the Sum column to tag the entries that make up that total.

 

Deposit Sum Tools:

To Uncheck those Deposits that are tagged for the Sum (clear the sum amount), select the SuppressClearedButton button next to the Sum field. If an entry is tagged for BOTH Clear & Sum, selecting this button will Clear the entry AND Suppress it from the grid.

 

To clear all of the Summed entries, use the Clear Summed Deposits tag button small button.

 

To Unclear the Summed Deposits, select the Reset_UnclearButton button.

 

To Combine the summed Deposits into one total Deposit slip, select the CombineButton button. This will combine each tagged Sum Deposit into one Total Deposit entry. The Edit Deposit Slip and Date window will open.  Enter the Date and Deposit Slip Number that Design Manager should use for the Deposit. TIP: This button can also be used to edit the Date or Deposit Slip Number of any single Deposit in the system.

 

 

Service Charges:

You may also have received service charges from the bank.  They will also be listed on the bank statement.  To enter these charges you should click the Edit Service Charges edit_pencil button to the right of the Service Charges field.  The Service/Finance Charges Window will appear.

 

service charge window-example

 

Click the Add button to the right of the Service Charges Grid to display the Service/Finance Charges Distribution Window on which you may enter the dollar amount of the service charge as well as the General Ledger Expense Account to which it should be recorded.  As you enter these charges the total amount will be updated in the Total Service/Finance Charges field.  When you have entered all of the charges, this number should agree with the dollar amount of service charges on your bank statement.

 

Click OK on the Service/Finance Charges Window and you should see the service charge amount appear in the Service Charges field on the Reconcile Cash window.  The entry on the Payments Grid for the service charge will also be marked as cleared.

 

Your bank statement may include a total for the checks and service charges and a total for the deposits and interest that it is reporting.  If so, you can check your work by comparing the total for the Checks in the Total Cleared Checks field.  You should also compare the total for the deposits to the Total Cleared Deposits field.

 

When your Total Cleared Deposits, Total Cleared Checks, and Service Charges all agree with your bank statement, you can review the right panel to see the Totals. Design Manager will then deduce the Calculated Book Balance by adding any outstanding deposits and subtracting outstanding checks to indicate the amount that should be in your Checking Account according to the bank.

 

The Calculated Book Balance will be compared to the current balance of the Checking Account in Design Manager in the Computer Balance field.  Any difference will be shown in the Difference field.

 

rec cash window - example

 

When The Bank Statement Balances! appears, everything is in agreement and you are finished.

 

rec cash window - exampleBalance

 

It is recommended that you click the Print button to print a copy of the reconciliation for your records.

 

chk bk rec report window

To print out the Cleared entries as well as the outstanding entries, choose Yes (This option is NOT available upon reprint).

 

Once the document has printed,  you can click the Accept AcceptButton button at the bottom of the Reconcile Cash window to indicate that the reconciliation is complete and correct.

 

If there is a difference, you will need to re-examine your work.  Be sure that all of the common reconciliation issues mentioned below have been reviewed. You can utilize the Transaction Search to look for specific entries that make up your difference.  Make any corrections necessary to make the Bank Statement balance. Once balanced, Print and Accept your Reconciliation.

 

 

Common Reconciliation Issues:

If the totals in Design Manager do not match the totals shown on the bank statement, then one of the following problems may have occurred:

 

1.You may have neglected to click the Clear column for one of the Checks or Deposits shown on the statement.  In the same vein, it is also possible that you accidentally cleared a Check or Deposit that was NOT listed on your statement.  If so, you can remove the check mark from the Clear column by clicking it again.

 

2.You have a Check or a Deposit with an amount that differs from the amount that the bank is reporting.  Look at each Check and Deposit that you have cleared and make sure that its amount matches that shown on the bank statement.  If you find a difference, you can correct it in Design Manager if the transaction has been entered erroneously or else you will need to contact your banking institution if they are in error.

 

3.You failed to enter a Check or Deposit at all.

 

4.You entered the wrong Bank Statement Ending Date.