Bank Reconciliation Tips and Tricks

Hi all,

I've noticed that there have been a lot of Bank Reconciliation questions posted in the Forum and I thought I'd provide some tips and tricks when using the Bank Reconciliation feature in Simply Accounting. The most common issues that I've found are users can't post the reconciliation in Simply Accounting due to a discrepancy or they're wondering why that 1 transaction (or in some cases several transactions) aren't appearing in their reconciliation screen. In my experience moderating the Forum and speaking with clients on the phone or in chat, I've spoken with users who have spent hours on an issue in the bank reconciliation and are very frustrated. This is certainly understandable and I thought I'd provide some tips and tricks to help ease that frustration.

When helping clients with the bank reconciliation, I follow a checklist and find this helps more often than not. I've listed the checklist below:

NOTE: It is recommended to have your bank statement in front of you when reconciling the bank account. For some this may seem obvious however I get asked every now and again if they should have their bank statement in front of them when reconciling in Simply Accounting.

  1. Confirm that the Statement Start and End Date in the Simply Accounting bank reconciliation screen match what is says on your bank statement. Also make sure that the Statement Opening and End Balance match what is on the bank statement.
  2. If you haven't done so already, double check that the correction transactions have been cleared in the Simply Accounting bank reconciliation screen as per your bank statement
  3. If after this point, you still find that you have a discrepancy, unresolved or are missing transactions in the reconciliation screen, try displaying a General Ledger report with corrections (Reports/Financials/General Ledger or it may say "Transactions by Account"). Before displaying the report, enter in the same start and finish dates as your bank statement, select your bank account and put a checkmark in the "corrections" box if it is not checkmarked. Click OK to display the report.
  4. Compare the General Ledger report with corrections to your bank statement. This is a good way to double check the bank statement you have manually reconciles to the transactions posted to the bank account in Simply Accounting. If you find that it doesn't manually reconcile, there could be a few reasons for this:

I. The first scenario you may find is that the transaction appears on the bank statement but doesn't show up on the General Ledger report. This means either the transaction wasn't posted to this bank account in Simply Accounting at all or wasn't posted with the correct date. You'll need to find out if the transaction was posted or posted with the incorrect date and make the necessary corrections in Simply Accounting if need be.

II. The second scenario is you'll find the transaction posted in the General Ledger report with corrections but it isn't showing up on the bank statement. At this point you'd want to double check that the transaction hasn't been cleared in the reconciliation screen. 

III. The third scenario is the transaction appears in the General Ledger report with corrections but the transaction isn't showing up on the reconciliation screen. You'd want to double check your dates for this issue in the reconciliation screen. 

If you've gone through all these steps, at this point you'll want to reset the bank reconciliation. What does resetting the reconciliation do? It will remove all the bank reconciliations you've posted in Simply Accounting in the past. However don't worry! Always create a backup before resetting and print off the Reconciliation reports as well. This will serve as a soft copy (backup) and hard copy (reports) if you need to refer to them later or serve as proof they were reconciled in the past successfully. After you reset, start with the month you were having issues with as you don't need to re-post the previous month's work of reconciliations. Also keep in mind your transactions will not get effected in any way. Only the reconciliations that were posted in the past will be reset and not the transactions you posted. I've provided a link below to a blog written by my colleague Nemanja talking about common issues with Bank Reconciliations. In Nemanja's blog you'll also find a link to another blog and knowledgebase article on resetting the bank reconciliation. I've also provided a link to the resetting bank reconciliation article below just in case.

A Common Problem with Bank Reconciliation

Resetting Bank Reconciliation