Reconcile Bank Accounts (Part 2)
Reconcile Bank Accounts (Part 2)
This topic will help you learn to use Total Office Manager’s bank and credit card reconcile feature. This is the second topic of two topics related to this feature.
This feature reconciles your Total Office Manager bank and credit card transactions against the actual statements that are sent to you. This helps make sure that all of your transactions in Total Office Manager match the transactions as reported by your bank or credit card company.
Note: This utility (form) is where you pay your credit card statement.
- From the main menu click Banking | Reconcile Account.
Fields and Labels Defined
|Reconciliation for Period Ending||The last date of the period you are reconciling. This is usually the same as the statement date on your bank or credit card statement. This is NOT necessarily the last day of the month.|
|Beginning Balance||You entered this on the first form. The ending balance of your last statement. If you have never performed a reconcile, this will be the current balance of this account.|
|Checks and Payments||This list displays all of the checks and payments (if any) that need to be checked if they have cleared the account (e.g.: bank). Note: “Cleared the Account” means they show up on your bank or credit card statement.|
|Deposits and Other Credits||This list displays all of the deposits and other credits (if any) that need to be checked if they have cleared the account. Note: “Cleared the Account” means they show up on your statement.|
|Items You Have Marked Cleared||These are the items you have marked as cleared. This means they have been noted (show up) on the statement. There are two different types; Deposits and other credits and checks and payments. See below for an explanation of each.|
|Deposits and Other Credits||The total sum or amount of the deposit and credit related items on your statement that you have marked as cleared.|
|Checks and Payments||The total sum or amount of the check and payment related items on your statement that you have marked as cleared.|
|Service Charge||This field indicates the total of any service charges you may have entered on the prior form.|
|Interest||This field indicates the total of any interest charges you may have entered on the prior form. This is usually only used for credit card statements.|
|Ending Balance||You entered this on the first form. The balance as shown on your statement. Enter the ending (last) $ balance shown on your bank account.|
|Cleared Balance||This refers to the balance as indicated by Total Office Manager. In other words, this is the balance as reported by your Total Office Manager software program.|
|Difference||The difference between the Ending Balance and the Cleared Balance.|
|Mark All||Marks all of the checks and payment items in the list.|
|Unmark All||Unmark all of the checks and payment items in the list.|
(with date range)
|This button allows you to mark items based on a date range. This is useful when you are reconciling for the first time and have a lot of items to mark. To use this feature, enter a date range (refers to the date of the transaction) and click the Mark button.|
(with date range)
|This button allows you to unmark items based on a date range. This is useful when you are reconciling for the first time and have a lot of items to unmark (after using the Mark All button). To use this feature, enter a date range (refers to the date of the transaction) and click the Unmark button.|
|Modify||Takes you back to the first form (the setup form) for changes.|
|Refresh||Updates the information on the form. This can be handy if you suspect changes have been made in Total Office Manager that affect the numbers or information on this form.
Note: If you click “Refresh” without first clicking “Save” the form will clear ALL check marks you have currently made. Be sure to click “Save” before clicking “Refresh” as to not lose your work.
|Reconcile Now||Saves your entries and begins the process of reconciliation.|
|Save||Saves your entries and\or changes and does NOT complete the actual reconciliation process. This unique option allows you to come back later and finish it.|
- Open the form as outlined above.
- Enter information and make the various selections as needed. See Fields Defined above for a complete explanation of what they mean.
- Double check your work and click the Reconcile Now button.
- One of the most common problems people have with the Bank Reconciliation feature is when they delete or void a cleared record (like a check) and then re-enter it using the same information. This item will be shown as “not cleared”.
- Use the “Advanced Search” feature to search for entry amounts prior to starting the reconciliation. If you cant find a debit or credit, this allows you to find out why and correct it prior to the reconciliation.
- Review your bank and credit cards every 1-2 days. This allows you to find charges/credits that may not have been entered earlier in the period.
- Implement a rule in your office that if a charge is made, an e-mail with the receipt must be sent to you immediately. This is helpful when multiple people make charges.