PSA L&P - Bank Reconciliation: How to reconcile your bank account periodically throughout the month

How to reconcile your bank account periodically throughout the month

Also described as 'Can you reconcile a bank account using a date other than the last day of the month?'

Although the bank statement date is the most often used in the Statement Date field of the Bank Reconciliation Process, with the proper information, you may reconcile your bank account periodically throughout the month dating it according to the information you have. This may be done throughout the month with multiple bank reconciliation processes or using only one reconciliation process and updating it as new information is available.

For example: If your bank statement is always dated the last day of the month but you have access to your daily bank balance and you need a reconciliation report as of the 17th, you may simply use the 17th as the Statement Date entering the bank's balance from that same date. Reconcile/clear items (dated through the 17th) as you normally would then complete the process with the reconcile button. Once your statement arrives, you must do another reconciliation dated for the end of the month for the rest of the items. That means you will have two reconciliation reports for one month.

Another option would be to enter a Statement Date as the end of the month (in this example it would be September 30th). Enter the Ending Balance as of the 17th and clear items dated through the 17th.  When you get to the end of the month, update to the true month-end balance and clear any items that cleared after the 17th. Using this method, you only have one reconciliation report for the month.

Note: Some users reconcile their bank statements daily by entering the month-end date, and going in every day and clearing transactions. If either of these last two options is used, the Bank Reconciliation should not be closed until the end of the month. 



Was this article helpful?

0 out of 0 found this helpful

Have more questions? Submit a request