Sage Bank Reconciliation

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Areyouconfusedaboutyourfinancialrecordsorbankstatements?ReconcilingSageBank accountonaperiodicbasisisoneofthemostdauntingtasksthatyou’veeverdealtwith.It enablesyoutoverifythatyourrealbankbalancematchesyourSageBusinessCloudbank balanceandtomakesurechargesandinterestpaymentsarerecorded.Thebankstatement generallykeepsarecordofallthedeposits,withdrawals,andotherfinancialoperationsanda minormistakeinthismayputyouintotrouble.

Thiswillletyougenerateyourownstatementtocomparethetransactions.Ifthetransactions withinyourcompanyfilewillbeequivalenttothetransactionsmentionedontheaccount statementthenyourreconciliationiscompletedsuccessfully,andnowyoucanbeconfident abouttheaccuracyofyourtaxreporting.Bankreconciliationalsohelpsyoutodetectand identifybank-relatederrors,dataentryerrors,andotherfraudulentactivitiesaswell.Toclear allsuchdoubtsanduncertainty,wecomeupwiththisblogthatwilldefinitelymakeyou understandhowtodoSageBankReconciliation.Let’sgetstarted:

Why is it compulsory to do Bank Reconciliation Sage?

ReconciliationisallaboutyouhaveverifiedthatthetransactionsenteredintoAccountingare equivalenttothetransactionsinyouractualbankaccount.

Thisensuresthefollowing:

Youhaveenteredallthetransactionsappropriately.

ThebankbalanceyouseeinAccountingpreciselyreflectsthebalanceofyouractualbank account.

Yourfinancialreportsshouldbecorrect.

Youcanonlyreconcileacurrentoracreditcardaccount,notacashaccount.

Understand how to do Sage Bank Reconciliation!

SageBankReconciliationisnecessaryeverytimewhenyoureceiveastatementfromyourbank.

Itspurposeistoverifythatyourbankbalanceisaccurateandmatchestheopeningbalance fromyourbankstatementwhiledoingyourfirstreconciliation.

Forthis,youneedtowritedowntheclosingbalancefromyourbankstatementandthencheck allthetransactionsequaltothebankstatement.Ifeverythingmatches,thetotalofall reconciledtransactionsincludedinthestartingbalancemustbesimilartotheclosingbalance.

Besurethatthedifferencewillbezeroifyouwanttoconfirmthis.

FromBanking,accessthebankaccountyouwishtoreconcile.

TapontheReconcilelink.

Step 1: Enter your statement details

SageBankReconciliationisnecessaryeverytimewhenyoureceiveastatementfromyourbank.

Itspurposeistoverifythatyourbankbalanceisaccurateandmatchestheopeningbalance fromyourbankstatementwhiledoingyourfirstreconciliation.

Makesurethatthestatementsummaryyouenterisaccurateandprecise.Thisinformation affectsthetransactionsyouseeandalsothetargetbalanceforthebankreconciliationSage.

StatementDate:Youneedtoenterthestatementdatefromyourbankstatement.

EndingBalance:Typetheclosingbalancefromyourbankstatement.

Reference:Addareferencefromyourbankstatement.Thisisnotmandatory.

TochangethestatementsummaryinformationintheReconcilewindow,taponEdittothe pencilicon.

Atlast,chooseApply.

FromBanking,accessthebankaccountyouwishtoreconcile.

TapontheReconcilelink.

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Step 2: Include interest and charges

It’sverysimpletoaddinterestandchargesrightatthebeginningofyourreconciliation.Any interestorchargesyouincludehereareautomaticallymarkedasreconciledtoo.

Tokickoff,chooseInterestandChargestoenterthedetails.

Now,tryouttheavailableoptionstorecordinterestpaidandreceived,aswellasnormal bankcharges.

TypetheamountintherelevantboxtorecordaBankCharge,InterestCharge,orInterest

Earnedasrequired.

IntheDatebox,enterthedatewhenthetransactionsaredone

PressSave.

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Step 3: Check your last Reconciled Balance

UndertheMatchedtransactionswindow,checkforthelastreconciledbalance.

DoestheLastreconciledbalanceissimilartotheopeningbalanceonthebankstatement you 'rereconciling?

If,itmatches-ContinuetoMatchyourtransactions.

No,itdoesn’tmatch-Youneedtoidentifythereasonswhy?

Step 4: Reconcile your transactions

Ifyouuseabankfeedorimportfromyourbankstatement,yourimportedtransactionsmustbe alreadychosenastheyhavecomefromyourbankaccount.Toreconcileyourtransactions, performthestepsasfollows:

Firstofall,checkeachtransactionoppositetoyourbankstatement.

Ifthetransactionmatches,taponthecheckintheReconcilecolumn.

Toreconcilealltransactions,clickthedrop-downarrownexttoInterestandChargesand selectReconcileAllEntries.

Onceyoureconcileeachtransaction,thereconciledbalancesstartupdatingatthebottomof yourscreen.

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Step 5: View Reconciled Report

Intheinception,selectBankAccountsandthentapontherelevantbankaccount.

HitReconcilethenpressOK.

YouneedtochooseViewHistory.

Oncedone,aPDFfilepopsupalongwiththebankaccountandreconciliationdate.

Clicktwiceontherequiredpdffile.

Step 6: Save as a Draft

Youhaveanoptiontosavethereconciliationasadraftifyouwanttostopitatanypointand comebacktocompleteitlateron.

Forthis,clickthedrop-downarrownexttoFinishandselectSaveforlater. Itisimportanttofinishthedraftreconciliationbeforestartinganewone.

TapontheReconcilelinktocomebacktothesavedreconciliation.Thesavedreconciliation willopenupautomatically.

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Step 7: Un-reconcile transactions

Youwon’tbeabletoun-reconciletransactionsonceyouselectFinish.Thetransactionscanonly beunreconciledwhenyousavethereconciliationasadraft.

Toun-reconcilethetransactionsaltogether,hitthedrop-downarrownexttoInterestand ChargesandselectUn-reconcileAllEntries.

TickmarkthecheckboxintheReconcilecolumntoun-reconcileeachtransactionseparately.

Thiswillerasethetickandreconcilesthetransaction.

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Step 8: Complete the Bank Reconciliation

TheBankReconciliationSageisover,ifyouhave

Reconciledalltransactions, Thereconciledbalanceissimilartothetargetbalance.

Thedifferenceiszero.

Whenthereconciliationcomestoanend,selectFinish.Afterthis,

Wewillmarkalltransactionsasreconciledsotheyarenotinvolvedinanotherreconciliation.

Youareunabletoreverseordeletethereconciliation.

Youcannotun-reconciletransactionsindividually.

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What if when the difference is not zero?

Therearemultiplefactorswhenthedifferenceisnotzero,allofthemarehighlightedbelow:

Theenddateofthestatementisnotaccurate.

TheStatementendbalanceisfaulty.

Sometransactionshaveadiversedatetoyourbankaccount.

Thestartingbalanceisnotequaltotheopeningbalanceonyourbankstatement.

Apreviousreconciliationhasvariations.

Also,thelastreconciliationisstoredwiththewrongdate.