Reconciling a Bank Account

By reconciling a bank account, you can verify that the balance you’ve calculated for the account matches the balance calculated by the bank.

Note: Before you can reconcile a bank account, the check register’s ending balance must match the general ledger’s balance for the bank account.

To reconcile a bank account

1. On the General Ledger menu, select Check Reconciliation. The Check Reconciliation screen appears.

Tip: To display payments or deposits that are marked to be voided, select the Show Pending Voids check box.

2. Compare the check register and general ledger balances:

a. Write down the amount in the Balance field.

b. Click Reconcile.

c. Write down the amount in the GL Bal field. If the two balances differ, make adjusting journal entries or check-register entries as needed. Keep in mind that pending voids affect this amount.

d. Click Cancel to exit reconcile mode.

3. Mark each check, deposit, fee, and withdrawal on the bank statement as cleared on the Check Reconciliation screen. To mark an item as cleared, double-click its row. The letter C is displayed in the C column for items that have been marked as cleared.

4. If the bank statement shows any payments, deposits, or withdrawals that are missing from the Check Reconciliation screen, add them and mark them as cleared.

Tip: To generate a record of cleared and outstanding items, click Cancel to close the Check Reconciliation screen. Then print the Check Register Report. After the report prints, resume the reconciliation. For more information, see Check Register Report.

5. Click Reconcile. The Check Reconciliation screen changes to reconcile mode.

6. Type the bank statement’s ending balance in the End Bal field. The amount in the Difference field should be $0. If it isn’t, make sure the beginning balance is correct and that the appropriate items are marked as cleared.

Note: The amount in the Begin Bal field should match the bank statement’s beginning balance.

7. Verify that the difference is $0.00, and click OK. One of the following occurs:

If any items are marked as pending voids, the Report Window appears. Print the Check Reconciliation - Voids Report and close the Report Window. Then finish the reconciliation.
If no items are marked as pending voids, TireMaster prompts you to finish the reconciliation.