Process for Daily Bank Reconciliation

Here are some key things to remember if you are doing daily bank reconciliations.

1. Daily bank reconciliation. 
   • Some clients wish to reconcile to the bank balance during the current month.  For example, the current month is April and "today" is 04/10 and staff want to reconcile through yesterday.
   • Past GL Months are not part of daily reconciliation. If the month is physically in the past, then just reconcile for the entire month. Never change the reconcile date from today’s date.
2. Reconcile Date
   • In the following examples, we will pretend that today is 04/10 and we are reconciling to the bank balance as of 4/09.
   • Change the reconcile date to 04/09.  Click Display.
   • The second column of the bank reconciliation view has the GL Balance which is now the GL balance at the end of the day on 04/09.
     •   Important, this amount is based on the entry date (or modified date.) So, if a JE is entered on 04/10 or later, it will not be included in the GL balance.
   • Bank Statement balance in the second column. Input the 4/09 bank balance
   • Clearing rows. You can now start clearing rows (checks, JE entries, deposits, etc.)  Notice that when you clear a row that the reconcile date is 04/09/XXXX
   • Adjustments button. The adjustments needed as of 04/09 work just as if you were doing a reconciliation at the end of the month, except that the entry date is the cut off.
     • If there is a journal needed as of 04/09 but you are not physically entering it into the GL until 04/10 or later, you need to include this in the adjustment button
   • Entry Date, pretend that you see an entry in the bank that is needed in the GL and you do the entry today which is 04/10.  That entry will not be displayed as a row on the reconciliation as of 04/09, so you need to enter an adjustment for that JE. When you reconcile 4/10 or later, remove the adj row. NOTE: GL Date is not Entry Date.
   • You finished the daily rec for 04/09, click the report dropdown, select "Create bank rec reports."  This will create 2 Excel files and save them to a snapshot.
   • You are ready to do a daily rec for 04/10 and today is 04/11 or later.
     • In the GL Month for April set the reconciliation date to 04/10 and click display. You entered the JE on 04/10, so you can click on the adjustment button and remove the adjustment row that became the JE. Change the Bank Statement amount in column 2 to the bank balance at the end of 04/10 and click display. Continue with clearing rows and entering needed adjustments as of 04/10.

3. Examples of how a daily reconciliation can get confusing.
   • You did not finish the reconciliation for 04/09 and you continue working on it on 04/11, but you forget and leave the reconcile date as 04/11 and click display. The GL balance in column 2 is now as of 04/11, so the "reconciliation" to 04/09 starts with the wrong ending balance in the GL.
   • On 04/11, you also clear a couple of rows, you made the cleared date 04/09 or earlier, but the reconcile date for those cleared rows is 04/11.
   • You realize the mistake and change the reconcile date to 04/09 and click display. Now, the rows that you cleared with a reconcile date of 04/11 are included as outstanding as of the reconcile date 04/09.  If they cleared at the bank on or before 04/09, then you will need to unclear and then clear them to change the reconcile date to 04/09.