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Bank Reconciliation

Intro – Bank Reconciliation #

Bank reconciliation is a crucial accounting process that compares a business’s accounting records with information on the bank statement. The goal is to identify and resolve any discrepancies between the two to ensure that both records are accurate and up to date.

How to get bank statement

  1. Download bank statement, in csv format, from your bank.
  2. Import that csv file into acci.cloud. (see details below)

How to get transactions referring to the bank account

Bank Reconciliation app automatically finds all transactions that you have recorded and referring to the bank account. Those transactions include

  • Receipt
  • Payment Received
  • Misc Receipt
  • Payment
  • Bill Payment
  • Prepayment
  • Daily Expense
  • Advance Payment
  • Reimbursement
  • Payroll

Match if you have recorded the bank related transactions

Imported bank statements are considered uncategorized transactions. You can either match them with transactions created in your Acci.cloud or categorize them. If a small discrepancy exists when matching, the system will record it as an adjustment.

  • For bill and invoice payments, you can match a bank statement transaction to a bill or an invoice that hasn’t been recorded as paid yet. The system will then automatically create a bill payment or a payment received, and mark the corresponding bill or invoice as paid.

Categorize if no matching transaction

If a bank statement is imported into the system and there is no matching transaction, you can categorize the bank statement instead. However, we encourage you to use the data-entry and matching approach, as the detailed information entered on dedicated applications like those for invoices or bills is very useful for sales and expense analysis. The categorization approach may be good for expenses, as the system will automatically create daily expense or credit card charge transactions for you.

For payment transaction, categories include

  • Expense
  • Card Payment
  • Vendor Payment
  • Prepayment
  • Transfer to other account
  • Customer Refund

For deposit transaction, categories include

  • Sales Without Invoice
  • Customer Prepayment
  • Interest Income
  • Other Income
  • Transfer from other account
  • Vendor Refund
  • Employee Repayment

Import Bank Statement #

  • Download bank statement from your bank. Make sure that the export format is csv (comma separated values).
  • Go to Bank / Credit Card on the left sidebar, and select Bank Reconciliation
  • Click or tap “Import” tab
  • Select bank account from dropdown list.
  • Click “IMPORT CSV” button.
  • Select the downloaded file.
  • On the “Map CSV Column” page, fill in the following
    • First row in statement is a header row: Check this option for header row.
    • You need to look at your statement and specify which columns match the fields in Acci.cloud.
      • Date
      • Date Format: select date format of the date field
      • Description: if any
      • Number of Amount Column: Select 2 if you see pair of columns like “Deposit – Withdrawal”. Select 1 if you see only amount column.
      • Amount: specify amount column if the number of columns is 1
      • Payee: if any
      • Reference: if any
      • Transaction Id: if any
    • Click “Import” button
    • You’ll find all imported statement transactions on the Transactions -> Uncategorized tab.

Undo Last Import #

  • Go to Bank / Credit Card on the left sidebar, and select Bank Reconciliation
  • Click or tap “Import” tab
  • Select bank account from dropdown list.
  • Click the dropdown icon next to the “IMPORT CSV” button.
  • Select “Undo Last Import“.
  • Click Yes to complete the action.
  • System unmatch all transactions that were previously matched with the imported statement lines and then delete the last imported bank statement.
  • If any imported bank statement line has been reconciled or cleared, the system will abort the undo operation and tell you to delete the reconciliation first. Note that system unmatch all transactions matched with bank statement lines when deleting reconciliation.

Matching Transactions #

  • Make sure that you have entered all bank related transactions, including invoices and bills, before you start matching.
  • Go to Bank / Credit Card on the left sidebar, and select Bank Reconciliation
  • Click or tap Transactions -> Uncategorized tab.
  • Select bank account from dropdown list.
  • On this page, you’ll see list of all unmatched / uncategorized bank statement you have imported. There is an option to filter only the uncategorized transactions of the latest bank statement if required.
  • When you click the Match button on any row, the system will display the best match.
    • If this is a correct transaction, click the Match button. You can undo this action later.
    • The amount on the bank statement may not match your transaction amount due to a payment fee. You can still match the transactions by making an adjustment. Just click the Match button, the system will prompt you for additional information, such as which expense account to use.
    • If none of best match transaction is the correct one, click Show All Transactions button. Now you can find a matching transaction from all transaction you entered and have not been matched or categorized.

Match 1 Bank Statement to Multiple Transactions (One-to-Many) #

  • Under Transactions -> Uncategorized tab, click Match Option button located in the top-right corner of the page. Then, a dropdown menu appears, with “One-to-One” as the default value.
  • Select match option to “One statement transaction to multiple company transactions“.
  • Select bank account from dropdown list.
  • On this page, you’ll see list of all unmatched / uncategorized bank statement you have imported. There is an option to filter only the uncategorized transactions of the latest bank statement if required.
  • Click Match button on the statement transaction you want to match.
  • System shows all transaction you have entered and have not been matched or categorized along with a Select column located as the first column.
  • Pending amount is a difference between the amount on the bank statement and the total of the selected transactions.
  • Select transactions until the pending is zero, then click Match button located at bottom of the transaction list. If pending amount is not zero, then system will prompt you enter adjustment details.

Match Multiple Bank Statements to Single Transactions (Many to One) #

  • Under Transactions -> Uncategorized tab, click Match Option button located in the top-right corner of the page. Then, a dropdown menu appears, with “One-to-One” as the default value.
  • Select match option to “Multiple statement transactions to single company transaction“.
  • Select bank account from dropdown list.
  • On this page, you’ll see list of all unmatched / uncategorized bank statement you have imported along with a Select column located as the first column. There is an option to filter only the uncategorized transactions of the latest bank statement if required.
  • Select bank statements you want to match, then click Match button located at bottom right corner of the page.
  • The system will display the best-matching transactions based on the total amount of the selected bank statements. If no transaction is found, click Show All Transactions button. Find the correct transaction and click Match button. System will then prompt you enter adjustment details if there is any discrepancy.

Categorize Bank Statement Transaction #

  • If there is no matching transaction, you can categorize the bank statement instead. System will create transaction and associate with the selected bank statement line.
  • Click Categorize button on the statement transaction instead of Match button.
  • The Categorize page appears, and the title is typically pre-labeled as either a “Deposit” (for money coming in) or a “Payment / Withdrawal” (for money going out).”
  • Fill in the following fields
    • Date: The default date is today.
    • Amount: This is the amount on the statement line. It is not editable.
    • Category: Select the appropriate account to which the transaction should be assigned. For example, Expense, Vendor Payment, Sales Without Invoice, Transfer from other account.
    • Expense Account: Select expense account when categorizing payment transaction.
    • Income Account: Select income account for deposit transaction.
    • Employee Advance Account: for “Employee Repayment”.
    • Customer: for sales, customer prepayment or customer refund
    • Vendor: for vendor payment or refund
    • Transfer from/to Account: for fund transfer transaction
    • Payment Method: optional
    • Description: optional
    • Reference: optional
  • Click Save button.

Exclude Bank Statement Transaction #

  • If there are any duplicate transactions in your bank statement, you may choose to exclude those duplicate statement lines.
  • Under Transactions -> Uncategorized tab, looking for a duplicate bank statement line, then click Exclude button.
  • The system will prompt you for confirmation. Click Yes to complete the action.
  • All excluded bank statements have been moved to the Exclude tab. You can restore any statement by clicking the Undo button.

Unmatch a Matched/Categorized Bank Statement #

  • If you accidentally match a bank statement to the wrong transaction or categorize it incorrectly, you can unmatch it.
  • Under Transactions -> Categorized tab, looking for such statement line, then click Undo button.
  • System will prompt you for confirmation. Click Yes to complete the action.
  • System will move the bank statement back to the Uncategorized tab. If the statement was matched to an invoice or bill, the system will also void any payment created during the matching process.

Unmatch Last Import #

  • Go to Bank / Credit Card on the left sidebar, and select Bank Reconciliation
  • Click or tap “Import” tab
  • Select bank account from dropdown list.
  • Click the dropdown icon next to the “IMPORT CSV” button.
  • Select “Unmatch Last Import“.
  • Click Yes to complete the action.
  • System unmatch all transactions that were previously matched with the imported statement lines.
  • If any imported bank statement line has been reconciled or cleared, the system will abort the unmatch operation and tell you to delete the reconciliation instead. Note that system unmatch all transactions matched with bank statement lines when deleting reconciliation.

Create a New Bank Reconciliation #

  • Go to Bank / Credit Card on the left sidebar, and select Bank Reconciliation
  • There are 2 ways to initiate bank reconciliation
    1. In the Summary tab, you will see a list of all bank accounts. Click or tap the Reconcile button on the row for the account you wish to reconcile.
    2. Go to History tab. Select bank account from dropdown list. Then click or tap “Initiate Reconcile” button.
  • System will prompt you to enter
    • start and end date of the period you want to reconcile.
    • ending balance of your bank statement
    • Click Start Reconciliation button
  • Bank reconciliation page.
    • Page header:
      • Account Id and account name
      • Your bank account number (define in Chart of Accounts app)
    • Summary line:
      • Statement Ending Balance: This is a closing balance you previously entered.
      • Beginning Balance: This is the account balance at the start of period.
      • Cleared Deposit: This is the total amount of deposit transactions which you mark as cleared.
      • Cleared Payment: This is the total amount of payment/withdrawal transactions which you mark as cleared.
      • Difference: This is the difference between your bank statement balance and your account balance.
    • Details: System shows list of your transactions of reconciliation period.
      • Category column: Value in this column can be
        • Match: This indicates that the transaction has been successfully matched with an entry on your bank statement.
        • Category Name such as Expense or Sales without invoice.
        • Blank: This indicates that the transaction has not been matched or categorized.
      • Clear column:
        • Mark the transaction as “Cleared” if it appears on the bank statement. If a transaction was matched with discrepancy, you should see an adjustment line next to it.
        • If you find a statement line that you cannot match to an existing transaction, we suggest you record it as an appropriate transaction type, such as Daily Expense, Payment, Payment Received, Prepayment, or Fund Transfer. Avoid using a Journal Entry unless it is for a specific double-entry debit-credit purpose. You can then resume reconciling with the newly created transaction.
        • If the missing transaction is an invoice or bill, the newly created item won’t appear on the reconciliation page because it’s not a payment. You must first match the bank statement line to the new invoice or bill in the Uncategorized tab. The system will then automatically create a payment for you, allowing you to proceed with the reconciliation.
        • For any transactions that have not been matched or categorized, please return to the Uncategorized tab to check for any remaining statements.
        • If the difference is zero and all statement lines are matched, but there are still unclear transactions.
          • Verify the remaining transactions for duplicates and delete them accordingly.
          • Checks take a couple of days to clear the bank. If the difference in your reconciliation is zero, you can ignore these outstanding check transactions by leaving the “Clear” checkbox unchecked. After you click the Reconcile button, the system will carry these transactions over to the next reconciliation period.
    • Save and Reconcile Later button: You can save your pending reconciliation with this button. You may find pending reconciliation under Pending tab.
    • Reconcile button: System save your reconciliation as reconciled and move it to History tab only when difference is zero.

Delete Bank Reconciliation #

  • You cannot delete a bank reconciliation for a past month without also deleting the one for the subsequent month. This is because the ending balance of the past month is the beginning balance of the subsequent month. For this reason, you are only able to delete the most recent reconciliation.
  • Go to Bank / Credit Card on the left sidebar, and select Bank Reconciliation
  • Select History tab.
  • Click or tap trash icon on the most recent reconciliation.
  • Click DELETE for confirmation.

 

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