Bank & reconciliation

You keep your bank balance in step with your books two ways: by recording each payment as it happens, and, when you need it, by matching a bank statement line by line. The base product has no live feed from your bank, so day to day you record every payment on the invoice or bill it settles. Full statement entry and the reconciliation screen come with the accounting package, enabled on request. This page covers both.

Record payments as they happen

Day to day you don't need a separate bank screen. When a customer pays, register the payment on the invoice; when you pay a vendor, register it on the bill.

1. Open the posted invoice or bill.
2. Click Register Payment.
3. Pick the journal that received or sent the money, the amount, and the date.

Each payment posts to the bank or cash journal you choose and marks the document Paid. See Get paid and Vendor bills.

Reconcile a bank statement

With the accounting package, you enter your bank statement and match each line to the document behind it. First, enter the statement:

1. Open the bank or cash journal.
2. Create a statement line for each transaction.
3. Set the date, the amount, and a label.
4. Save the lines so they are ready to reconcile.

Then match them:

1. Open the reconciliation screen for the journal.
2. Pick a statement line.
3. Choose the open invoice, bill, or payment it matches.
4. Confirm when the amounts agree.

A matched line marks the document as paid and keeps your ledger balance in step with your statement.

Tips

• Reconcile often. Short, frequent sessions beat one long one.
• Match by amount and date first, then check the customer or vendor.
• For a line that has no document, post it straight to an account, such as a bank fee to an expense account.
• Finish a statement only when the closing balance matches the bank.

Related

• Accounting overview
• Chart of accounts & journals
• Get paid
• The accounting package