A "Bank reconciliation" is the method by which you make sure that all entries on bank statements up to a specific date are matched with entries in the books and that any unmatched entries in the books relate to transactions that appear on the bank statements after the date chosen.

The bank reconciliation tool helps determine how much over/under the balance on Clear Books is compared to the actual bank account balance and enables you to reconcile the two with transactions that have been processed through Clear Books but have yet to appear on bank statements.

Step 1.


Navigate to Money > Bank accounts.

Bank accounts (2)

Step 2.


Click on the name of the relevant bank account.

bank name

Step 3.


Select the month/period on which to perform the reconciliation and click on the View bank reconciliation link.


datebankrec



Step 4.


Check or change the date on which to reconcile the account and enter the actual bank account balance on this date. Hit the view button to proceed.


bankrecview


Clear Books will now produce a report which will show the Clear Books account balance, any unreconciled transactions and the total bank balance less the reconciled transactions.  This is then compared with the actual balance you entered to show the difference between the two in red.

bankrecreport

If there is a difference, check that the unreconciled transactions have not yet appeared on the bank statement before the reconciliation date. If you find they do appear select their checkbox and chose the Reconcile button to remove them from the list, this will adjust, and, hopefully, remove, the difference.

If the adjusted Clear Books balance still differs from the actual bank account balance then you will need to perform a manual reconciliation of all the transactions appearing in the Clear Books bank account with those appearing on the bank statement.  Check in particular that any bank statements uploaded do follow on from each other and that there are no gaps or overlaps.