{"id":21482,"date":"2021-08-20T14:42:01","date_gmt":"2021-08-20T13:42:01","guid":{"rendered":"https:\/\/bigredcloud.com\/?post_type=docs&p=21482"},"modified":"2025-03-11T11:49:28","modified_gmt":"2025-03-11T11:49:28","password":"","slug":"doing-the-bank-reconciliation","status":"publish","type":"docs","link":"https:\/\/bigredcloud.com\/en\/documents\/doing-the-bank-reconciliation\/","title":{"rendered":"Doing The Bank Reconciliation"},"content":{"rendered":"[vc_row type=”in_container” full_screen_row_position=”middle” column_margin=”default” column_direction=”default” column_direction_tablet=”default” column_direction_phone=”default” scene_position=”center” text_color=”dark” text_align=”left” row_border_radius=”none” row_border_radius_applies=”bg” overlay_strength=”0.3″ gradient_direction=”left_to_right” shape_divider_position=”bottom” bg_image_animation=”none”][vc_column column_padding=”no-extra-padding” column_padding_tablet=”inherit” column_padding_phone=”inherit” column_padding_position=”all” column_element_spacing=”default” background_color_opacity=”1″ background_hover_color_opacity=”1″ column_shadow=”none” column_border_radius=”none” column_link_target=”_self” gradient_direction=”left_to_right” overlay_strength=”0.3″ width=”1\/1″ tablet_width_inherit=”default” tablet_text_alignment=”default” phone_text_alignment=”default” bg_image_animation=”none” border_type=”simple” column_border_width=”none” column_border_style=”solid”][vc_column_text]Having done both the preparatory work and the ticking (see Preparing to do a Bank Reconciliation with Big Red Cloud Accounting Software), your bank account records should be completely up-to-date. \u00a0The bank balance in your records is termed the Actual or True Bank Balance since it is now more accurate than the statement balance. Any difference between the bank balance according to your records and the statement balance can now only be due to outstanding items. \u00a0The bank reconciliation process itself simply consists of taking the statement balance, adding the total of outstanding items (i.e.<\/em> unticked items) and seeing if the result is the same as the Actual Bank Balance.<\/p>\n

To Do A Bank Reconciliation:<\/strong><\/p>\n

Select the Bank Account to Reconcile in\u00a0Lookup \/ Bank Accounts,\u00a0Setup \u2013 Bank Accounts\u00a0\u00a0and click on the Reconcile button or select via\u00a0Reports \/ Bank Accounts \/ Bank Reconciliation in the accounting software.<\/p>\n

Important Note:<\/strong><\/p>\n

If you have been ticking off items from bank statements it is generally not possible to re-do a bank reconciliation for an earlier period. \u00a0This is because all items for that period will have subsequently cleared through the bank and have been ticked, thus making it impossible to calculate the outstanding items total for that period.<\/p>\n

Include Entries Up To.<\/strong><\/p>\n

This will default to the current month. \u00a0Select a different month as required.<\/p>\n

Bank Statement Date.<\/strong><\/p>\n

The date of the last calendar day in the month selected is displayed. \u00a0Change to the actual Bank Statement Date if different.<\/p>\n

Bank Statement Balance (Minus if Overdrawn).<\/strong><\/p>\n

Enter the balance on the bank statement.<\/p>\n

Total Of Outstanding Entries.<\/strong><\/p>\n

This is the total amount of entries in the Bank Ledger which have not been \u2018ticked\u2019 as being on a Bank Statement.<\/p>\n

Actual Bank Balance.<\/strong><\/p>\n

On entering the Bank Statement Balance the Total of Outstanding Entries is deducted to give the Actual Bank Balance. \u00a0The difference between this and the Bank Ledger balance in Big Red Cloud is reported as a Discrepancy.<\/p>\n

***\u00a0 Discrepancy ***<\/strong><\/p>\n

This is the difference between the balance expected on your statement and the actual statement balance. \u00a0It is normal for some value to appear here when your Big Red Cloud entries and your entries on your Bank Statement are fully reconciled the amount of Discrepancy will be zero.<\/p>\n

The most likely causes of discrepancies are:<\/p>\n