Reconciling Business Bank Accounts with a Computerized System
If you use a computerized accounting system such as QuickBooks in your business, reconciling bank accounts should be much easier than if you were keeping your books manually. When you start the reconciliation process in QuickBooks, a screen pops up in which you can add the ending bank statement balance and any bank fees or interest earned.
The following figure shows you a QuickBooks screen in the reconciliation process. This example shows that $30,000 has been added as the ending balance and $10 has been added in bank fees. (The bank fees are automatically added to the bank fees expense account.)
After you click Continue, you get a screen that lists all checks written since the last reconciliation as well as all deposits. You put a check mark next to the checks and deposits that have cleared on the bank statement, as shown in the next figure, and then click Reconcile Now.
QuickBooks automatically reconciles the accounts and provides reports that indicate any differences. It also provides a reconciliation summary, shown in the following figure, that includes the beginning balance, the balance after all cleared transactions have been recorded, and a list of all uncleared transactions.
QuickBooks also calculates what your check register should show when the uncleared transactions are added to the cleared transactions.
After you close the Cash Receipts and Cash Disbursements journals and reconcile the bank account with your accounting system, post any adjustments or corrections that you uncover to any other journals that may be impacted by the change, such as Accounts Receivable or Accounts Payable. If you make changes that don’t impact any journal accounts, post them directly to the General Ledger.