Top 10 Tips for Out of Balance Bank Reconciliation
Tip #1 - Check your totals
Verify cleared checks and cleared deposit totals match the bank statement
Tip #2 - Check your entry
Verify ending balance, service charge, and interest income amounts on the right side of the reconciliation screen. Edit if needed. These can be updated right in the reconciliation screen.
Tip #3 - Check for duplicated entries
Verify no manual journal entry was created for the bank service charges or the interest income if they were also entered on the bank reconciliation display.
Tip #4 - Voided Checks
Verify voided checks and associated journal entries are both cleared. Each time a check is voided, the check is flagged as voided but the transaction remains. In addition, a new journal entry transaction is created which reverses the original transaction. Both the original and voiding transaction must be marked at the same time. If the void date is after the reconciliation date, you may not see the journal entry to mark it. You must wait until the voiding entry is available to mark before marking the voided check.
Tip #5 - Entry Error?
Verify you did not use the bank account in a line item on a bill/check or deposit instead of an expense or income account. The exception would be recording prior system checks or deposits. This article will walk you through finding these entries if they exist.
Tip #6 - Recalculate
If the recalculate button is present on the reconciliation screen, click it to update balances.
Tip #7 - Missing Work?
Check for missing transactions. Submit what you have done so far and add the missing transaction. Then, continue the reconciliation process.
Tip #8 - Check the date
Verify the date used on the Bank Reconciliation. Only those transactions dated on or before that date will display. This article will show you how to change the date if it is incorrect.
Tip #9 - New to PSA: Beginning Balance
Double check the beginning balance entry for the GL Account associated with the Bank Account. Using the prior month's bank statement, double check the math:
+ Uncleared Checks
- Uncleared Deposits
Tip #10 - New to PSA: Pseudo Entry
Did you account for prior month/year uncleared transactions? Pseudo transactions must be created for outstanding checks and deposits which were already recorded in your prior software but not yet reconciled.