4.6.4 Bank Reconciliation

It is recommended that, on a regular basis, bank account information in the web-system is reconciled to actual bank statements:

Access via the menu option: finance -> reconcile bank -> reconcile bank statements

1. From this screen please select the bank account, enter the  statement date to which you are doing the reconciliation up to and  closing balance amount according to your bank statement for that  statement date. So how much money does the bank account hold as of the date you have put in.

Example:

If you are doing a reconciliation up to the 30th September 19 with a closing balance of £9,531.00. The last statement date is 31st July 19 and last statement balance was £9,531.00. You would enter this into this screen. 

 

                                     

2. After you have entered the date and the closing balance, there will be an  Unreconciled Amount at the bottom of the reconciliation screen. This is the difference between the  last statement balance and the  closing balance (in this case it will be 0 as you have the same amount of money in the bank as the last reconciliation  ). 

You would then proceed to select all the transactions up until and including the  statement date which is 30th September 19 in this case. If all the payments and receipts have been accounted for, and the  Unreconciled Amount is zero, you can select the confirm button from the bottom right of the screen to complete the reconciliation for that period. (31st July 19 - 30th September 19). 

DO NOT select transactions that are not within the date range of your reconciliation.

Other Scenarios

 A more complex scenario is if the Unreconciled amount does not equal to zero but you have selected all of the transactions for that date range (last statement date up to statement date). 

Scenario 1:

 If all the transaction between the range, have been selected and there is a positive balance still listed it means there is a deposit(s) missing and need to be recorded. It is basically saying that your bank account has more money than it had before. You can use your physical bank statement to help you determine what deposit(s) are missing. Deposits are recorded as receipts and considered to be any money paid into the account. 

Scenario 2:

 If all the transaction between the range, have been selected and there is a negative balance still listed it means there is a payment(s) are missing and need to be recorded, again you can check your bank statement to confirm the missing payout(s).  Payments are considered as any money leaving the account.

Both payments and receipts can be recorded from this screen using the button options from the bottom left hand of the screen. Once the Unreconciled Amount is zero and all the payments and receipts have been accounted for, please select the confirm button to complete the reconciliation or that period. 

You can then run the Bank Reconciliation report which is based on ARMA regulations in the Workbench. 

More info:  3.4.10 Bank Reconciliations

• Related Articles

• 3.4.2 Agent Bank Account

  Group Bank accounts is a term used to describe one client account which is linked to multiple blocks. This is often the case when all the funds are put into the same account for all blocks so only one account is managed and reconciled. If a group ...

• 3.4.10 Bank Reconciliations

  This screen located in the Workbench under the Finance Tab is a useful tool to manage reconciliations of your bank accounts in the system (providing it has reconciliation batches and it will for now only allow you to un-reconcile the last batch one ...

• 3.4.9 Bank Statement

  The system allows you to check the bank statement of all your bank accounts across all your blocks. Here you can see the opening balance and closing balance of each account as well. It has its transactions listed with a running balance. The end ...

• 4.2.4 STEP 4 - Create Funds and Bank Accounts

  Access via Finance -> Set-up -> Funds To watch a video on how to carry out this process, please click on this video: 4.2.4 STEP 4 - Create Funds and Bank Accounts  The screen displays the following: Columns: Fund Name - This is a name used in the ...

• 4.6.3 Bank Interest

  To record bank interest: Access via the menu option: Finance -> Bank Statement To do this across all blocks, go to: Workbench -> Finance -> Accounts Receivable -> Post Income