CNA L&P - Bank Reconciliation: Basic Steps/Instructions

This article will outline the basic steps to process a bank reconciliation:

NOTE: When marking an item off the bank reconciliation you always mark at least two items. 

Examples: 

  • You mark off a check in ConnectNow and you mark off the check on your bank statement
  • You mark off a voided check and you mark off the Journal Entry that voided the check
  • You mark off a deposit in ConnectNow and you mark off the deposit on your bank statement

 

 Go to Ledgers and Payables Tab--> Process Icon--> Bank Reconciliation Link

 

  • Using the bank statement enter the information in the appropriate boxes. 
    • Be sure to use the Bank Statement Date.
      • Warning: The date cannot be changed once you submit this page unless you delete the entire bank reconciliation. 
    • Service charges and interest income are added here, not as a journal entry or bill

 

  • On the Reconcile Bank Account screen below, the red outlines indicate where the information you entered from the bank statement appears.  
  • All other information comes from your data in ConnectNow. 

 

 

Checks:

  • Using your bank statement mark off all checks that have cleared. Once you have marked all the checks that have cleared; look at the cleared check total and match to the bank statement cleared checks total

 

 

  • If the numbers do not match check for errors.

 

  • Note: If you have journal entries that are showing on your bank statement as a check you will need to add the cleared other and cleared checks together. Once you have all issues resolved with the checks, write down the cleared other amount. This will help you when you work on your deposits.
  • Do not process voided checks until you have matched the cleared checks and cleared deposit to the totals on the bank statement.
  •  **Links to information on how to locate errors are at the bottom of this article**

Deposits

  • Now that your checks are done use the same process for your deposits. 
  • Using your bank statement mark off all deposits that have cleared. Once you have marked all the deposits that have cleared; look at the cleared deposits total and match to the bank statement cleared deposits total. If the numbers do not match check for errors. 
    • Note: If you have journal entries that are showing on your bank statement as a deposit you will need to add the cleared other and cleared deposits together. Remember that if you had cleared checks showing in the cleared other you will need to use the amount you wrote down to match the deposit totals. 
  • If your cleared check and cleared deposits are matching your bank statement review any journal entries that have not been cleared. 

Journal Entries

  • Voided checks
    • Using the journal entry mark both the journal entry and the check that was voided.

Final Review

  • Review any unmarked transaction
    • Are there any unmarked transactions that need to be addressed or do you feel that they are outstanding transactions that will be cleared up on future bank reconciliations. 

 

Troubleshooting Checks

  • Possible solutions if you have checks showing on your bank statement that are not showing on your bank reconciliation. 
    • Look to see if the check was entered as a journal entry. 
      • A check recorded as a Journal entry will show in the cleared other as a negative number (-100.00)
    • Go to the check screen-->find check--> and search for the check. 
      • If  the check is found click on Go and review the Cleared Status, Void Status, Transaction Date, and Bank Account
      • If the check is not found, enter the transaction. 
      • Review the totals again 
.

Troubleshooting Deposits

  • Look to see if a deposit was recorded as a Journal Entry. It will show as a positive in cleared other (100.00) 
    • If you had a amount in cleared other when you finished your checks and had journal entry deposits you would need to subtract the cleared checks number from the cleared other. The difference would be added or subtracted from the check total to get the number to match with the bank statement. 

If you need professional services to do your bank reconciliation for you there is a minimum charge of $225 per hour with a one hour minimum. 

 

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