Do you have unreconciled Bank Transactions?

If your bank reconciliations are all tidy and tickety-boo you’ll have no unreconciled bank transactions rolling forward as queries or errors. But what if you do?

In today’s blog we look at:

  • What is an unreconciled bank transaction
  • Why you should ensure you check if you have any
  • When you should check for unreconciled bank transactions
  • How to tackle tidying up unreconciled bank transactions

What is an unreconciled bank transaction

An unreconciled bank transaction in the real-world (and therefore should be mirrored on Sage) is something out there in the ether that’s not hit your bank account yet, for example a cheque that hasn’t yet been cashed by your supplier. If you’re not using cheques, in reality there’s actually not much that would sit in your Sage bank account as unreconciled.

Why you should ensure you check if you have any

If you do have items that are unreconciled it’s worth checking what they are and why they are there, as they will have an impact on financial reports you run e.g. P&L.

When you should check for unreconciled bank transactions

It’s a good idea to check what’s unreconciled every time you reconcile your bank in Sage, monthly or at the very least (and this is not advisable!) at your year-end to make your accountants job a lot easier (and probably cheaper for you!).

How to tackle tidying up unreconciled bank transactions

The best way to deal with unreconciled bank transactions, will depend on the nature of the transaction, how old they are, whether your accountant posted them, what value they are and many other factors. The advice around how to deal with these is very specific to each company and so too lengthy to get into here, but if you do have quite a bit of tidying up to do to get your unreconciled bank transactions squeaky clean, we’d recommend you get some advice.

Let’s play a game! Look at the date you last reconciled your bank account and run off your unreconciled bank transactions report(s) (go to Bank > Reports > Unreconciled) – how many have you got? Are they really old? What is the total value of transactions that you don’t think should be there? Ping me an email and let me know!

08/06/2021

“Any advice relating to accounts or tax should be sought from your tax accountant. Sage Accounts Solutions Limited will not be held responsible for any loss or damage caused as a result of the information contained herein.”

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