Hi,

You can enter the book balance (if still in Historical entry mode for Accounts), or put the balance in using a journal entry, if not.

The account balance has to be set up before you can set up the reconciliation.  If the book balance is in, all you need for that is the bank statement.   You can set up and start doing reconciliations for your first statement, up until you've changed the program over to your third financial year.

It's probably not a bad idea to do a manual reconciliation on the previous and first statements, so that you're only  trying to figure out how to use the reconciliation module, and you already know that the statement does reconcile to your books.

Thanks for the info RandyW.

The program is not in Historical Mode so that is no help....

The issue is that our business turned into a Company on Jan 1st, but we kept the same bank account, so I need to account for the $41,000 in the bank as of January 1st.

As a journal entry, will I debit the bank account and credit Shareholder credit?

Regarding the manual reconciliation, I assume you are referring to going through and checking off all of the entries into the bank account?

Thanks for your help!

What does your data integrity say? That is under Maintenance, then down to 'Check Data Integrity'. The left side should equal the right side and at bottom should say 'Data OK' but have a feeling it won't say that for you.

Hi,

If you've incorporated as of January 1, and there was a shareholder deposit, that would be the correct journal entry.   You'll want to have a separate G/L account for each shareholder's shares and shareholders' loan accounts, if any.

For a manual reconciliation, I was referring to the pencil and paper sort of working out that you can do without using electricity - there's usually a form on the back of the bank statement.  

You can't set up reconciliation until you've set up your opening (beginning) bank balance, so you need to set that up first.  

so if this is a first time set up for an incorporated company and bank account is the same one then create a journal entry to debit bank and credit S/H Loan using the first day of the incorporated company fiscal year. I was under the impression that the accountant had set up historical balances to start from but not included the bank account balance.