Frequently Asked Question
Reconcile bank statements to G/L accounts FAQS
1. What is Bank Reconciliation Statement'
A form that allows individuals to compare their personal bank account records to the bank's records of the individual's account balance in order to uncover any possible inconsistencies. Bank reconciliation is the procedure of checking your bank account statements against your accounting records to make sure that transactions have been recorded correctly. You need to do this to make sure that your accounting records are exact.
2. What is bank reconciliation and why do I need to do it?
Bank reconciliation is the procedure of examination your bank account statements against your accounting records to confirm that transactions have been recorded appropriately. You need to do this to make sure that your accounting records are exact. If you are a Complete or Max customer, you need to complete bank reconciliation before our accountants can produce your Year End Accounts.
We recommend that you carry out bank reconciliation on a monthly basis when you receive your bank statement to minimize the chance of faults.
3. Where does the "Running Bank Balance" come from on the Bank Reconciliation?
The "Running Bank Balance" is defined as the sum of all client balances within the account (sum of field 18 in the bank account record), adjusted through bank account transactions that occurred subsequent to the bank reconciliation being worked on. The idea behind this calculation is to use an audit technique to make sure the bank book totals match up with the running totals from the bank account.
The financial period the transaction occurred in must be greater than the financial period of the "reconcile thru" transaction# entered in the previous screen. (If an empty value is entered in the "reconcile thru" field then the comparitive financial period is the current G/L financial period).