Reconcile an Account

Complete an account reconciliation when you receive or import a statement from your bank or credit-card company.

Note: Make sure you have set up an account for reconciliation and completed the first reconciliation.

To complete an account reconciliation:

1. Open the Reconciliation & Deposits window. How?
1. In the Home window, click Banking on the navigation pane.
2. In the Tasks pane, click the Reconcile Accounts icon.
2. Choose the account you want to reconcile.
3. Enter the Statement Start and End Dates, the Reconciliation Date, and the Statement Opening and End Balances. Also add a comment, such as "May 31 account reconciliation." This information appears on the Account Reconciliation report.
4. On the Income tab, enter interest earned and any other income from the bank or credit-card company.
5. On the Expense tab, enter bank charges and other expenses from the bank or credit-card company.
6. On the Transactions tab, process the transactions as follows:

If you imported a statement from a bank or credit-card company Web site

Sage matches transactions for you based on the source number (cheque number) and the amount. If a transaction is not matched, first check for errors in the source number or the amount in the imported statement. Then follow the rest of the steps.

If the transaction has cleared the bank or credit-card company

Mark it cleared (click beside it in the Cleared column ).

If a transaction has not yet cleared the bank

Leave its status as Outstanding.

If a transaction on the statement does not appear on the screen

and you did not add it to the Income or Expense amounts you entered earlier, add it by making an adjusting transaction. Make sure to assign a status to each new transaction.

To assign the same status to all transactions with the same deposit number, click the heading of the Cleared column . This way you can reconcile deposits reported as a lump sum on the bank or merchant statement, but recorded in Sage as several different receipts.

If you want to sort the transactions, choose a method from the drop-down menu. This will change the order in which the transactions appear when you run the report. The Order of Entry option allows you to sort transactions by the order in which they were originally entered.

Note: If you have upgraded your company from a previous version of Sage or another accounting program, sorting transactions by order of entry is limited to transactions processed in your current version of Sage. Pre-upgrade transactions will be sorted by date.

7. Use the Worksheet tab to check the details of your bank and other accounts.
8. Click Process.

If the unresolved amount is not zero, the program asks you to enter an account to which you want to charge an adjustment for the unresolved amount.

9. Print the Account Reconciliation reports. Make sure to notify your bank or credit-card company if you find any errors during the reconciliation.