Bank Reconciliation

Bank Reconciliation

Bank reconciliation is the process of matching transactions recorded in EquiBillBook with your bank statements to ensure accuracy and identify discrepancies. This guide will help you perform bank reconciliation effectively in EquiBillBook.

Understanding Bank Reconciliation

Bank reconciliation helps you:

• Verify that all bank transactions are recorded correctly
• Identify missing or unrecorded transactions
• Detect errors and discrepancies
• Ensure accurate bank account balances
• Maintain proper audit trails
• Identify outstanding cheques and deposits in transit

Prerequisites for Bank Reconciliation

Before starting bank reconciliation, ensure you have:

• Bank account set up in EquiBillBook
• Access to the Banking module with appropriate permissions
• Bank statement for the reconciliation period
• All transactions recorded in EquiBillBook up to the statement date
• Previous reconciliation completed (if applicable)

Accessing the Bank Reconciliation Module

To perform bank reconciliation:

1. Navigate to the Banking module from the main menu
2. Click on Bank Reconciliation or Reconciliation
3. Select the Bank Account you want to reconcile
4. Select the Reconciliation Date (usually the statement end date)

Steps for Bank Reconciliation

Step 1: Review Bank Statement Balance

Start with your bank statement:

• Note the Statement Balance as of the reconciliation date
• Review all transactions listed on the statement
• Identify any bank charges, interest, or fees
• Note any discrepancies or unusual transactions

Step 2: Review EquiBillBook Balance

Check your records in EquiBillBook:

• View the Book Balance for the selected bank account
• Review all transactions recorded up to the reconciliation date
• Verify that all deposits and withdrawals are recorded

Step 3: Compare Transactions

Match transactions between bank statement and EquiBillBook:

• Mark each bank statement transaction as "Matched" when you find the corresponding entry in EquiBillBook
• Match by amount, date, and reference number
• Verify amounts match exactly
• Check dates are within acceptable range

Step 4: Identify Unmatched Transactions

Find transactions that don't match:

• In Bank Statement but not in EquiBillBook: These need to be recorded
• In EquiBillBook but not in Bank Statement: These may be outstanding (cheques not cleared, deposits in transit)
• Review each unmatched transaction carefully

Step 5: Record Missing Transactions

For transactions in bank statement but not in EquiBillBook:

• Record bank charges and fees
• Record interest received or paid
• Record any unrecorded deposits or withdrawals
• Record automatic debits or credits
• Ensure all transactions are properly categorized

Step 6: Handle Outstanding Items

For transactions in EquiBillBook but not in bank statement:

• Outstanding Cheques: Cheques issued but not yet cleared by bank
• Deposits in Transit: Deposits made but not yet reflected in bank statement
• Mark these as outstanding items
• These will be matched in the next reconciliation

Step 7: Calculate Adjusted Balance

The system will calculate:

• Book Balance: Balance per EquiBillBook records
• Add: Deposits in transit and other additions
• Less: Outstanding cheques and other deductions
• Adjusted Book Balance: Should match statement balance

Step 8: Resolve Discrepancies

If balances don't match:

• Review all transactions again carefully
• Check for transposition errors (e.g., 1,234 vs 1,243)
• Verify amounts are entered correctly
• Check for missing transactions
• Review previous reconciliation for errors

Step 9: Complete Reconciliation

Once balances match:

• Review the reconciliation summary
• Add reconciliation notes if needed
• Click "Complete Reconciliation" or "Save Reconciliation"
• The system will mark the reconciliation as complete
• All matched transactions will be marked as reconciled

Reconciliation Features

Automatic Matching

EquiBillBook may offer automatic matching:

• System matches transactions by amount and date
• Review auto-matched transactions for accuracy
• Unmatch and rematch if needed

Manual Matching

For manual matching:

• Select transactions from bank statement
• Select corresponding transactions from EquiBillBook
• Click "Match" to link them
• Verify match is correct

Reconciliation Reports

Generate reconciliation reports:

• View reconciliation summary
• See matched and unmatched transactions
• Review outstanding items
• Export reconciliation details

Best Practices

• Perform bank reconciliation regularly (monthly recommended)
• Reconcile as soon as bank statements are available
• Keep bank statements and reconciliation records for audit purposes
• Review outstanding items in next reconciliation
• Investigate and resolve discrepancies promptly
• Document any adjustments or corrections made
• Review reconciliation history periodically
• Ensure all team members understand reconciliation process

Troubleshooting

Balances don't match:

• Double-check all transaction amounts
• Verify all transactions are recorded
• Check for transposition errors
• Review previous reconciliation for errors
• Ensure statement date is correct

Many unmatched transactions:

• Verify all transactions are recorded in EquiBillBook
• Check if transactions are in the correct account
• Review transaction dates
• Ensure reference numbers are correct

Outstanding items not clearing:

• Follow up on outstanding cheques
• Verify deposits in transit have cleared
• Consider cancelling stale cheques
• Review outstanding items list regularly