Overview
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A bank reconciliation is a process that explains the difference between the bank balance shown in an organisation's bank statement (as supplied by the bank) and the corresponding amount shown in the organisation's own accounting records at a particular point in time. If your account records does not agree with the bank statement, you must determine where the discrepancy is and make the appropriate corrections. It is normal for a company's bank balance to differ from the balance as per bank statement due to timing differences. Such timing differences appear as reconciling items in the bank reconciliation. Bank reconciliations should be done by date consecutively and periodically. Please ensure that the last bank reconciliation for a financial year is the last day of June - the system will not allow you to extract into the next month. You cannot commence a new bank reconciliation until your current bank reconciliation is balanced and finalised for the bank account you are reconciling.
The first bank reconciliation must represent the closing bank reconciliation from your old system and must balance back to your general ledger bank account. For the first bank reconciliation, the site will need to provide Readysell with the statement opening date and statement opening balance figure. Readysell will insert this for you as the starting bank reconciliation. Bank reconciliations are set to compress depending upon what rules have been set up against each tender (usually set up by Readysell at commencement of business). As well as making it easier to navigate the bank reconciliation, these compressed figures are used to guide the automatic matching and automatic generation features based on the tender and bank reconciliation rules. All transactions on a bank statement that relate to a card should be entered onto the card not through the bank reconcilation as a manual entry. |
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