Are you ignoring that your bank reconciliation is not zero?

Why Is It Important to Do a Bank Reconciliation?

Doing a Bank Reconciliation can be quite cathartic as it is very methodical. It is also an important task to complete regularly. The purpose is to make sure that the entries on your bank statement match what is in your accounts. This will enable you to identify any discrepancies and resolve them. It’s a straightforward process if your end balances match. But what would you do if your balances don’t match? It is not a good idea to just ignore it.

What Steps Should I Take After Completing My Bank Reconciliation in Sage 50 Accounts?

Once you have completed your Bank Reconciliation in your Sage 50 Accounts, and you have gone through the process of matching everything from the top to the bottom, check that you have a zero difference.

If it is not zero, here are a few things you check: –

  • That your ending balance is signed correctly. (If you have an overdrawn balance or are dealing with a credit card, make sure that you have entered it as a minus).
  • The opening balance at the beginning of the month should be the same as the closing balance from the end of the previous month, which should be the figure that the bank was reconciled to.
  • Have you matched anything where the figures are transposed e.g., £78 instead of £87
  • Have you posted any bank interest received
  • Have you posted any bank charges paid.

How can I quickly and easily see when I last reconciled my bank and what the ending balance was?

In Sage 50 Accounts go to bank accounts, highlight the account you are using and then pull through ‘Last Reconciled Date’ and ‘Last Reconciled Balance’ fields.

To pull these through, you can right click any of the headers above the list of bank accounts and then left click the field: –

The Last Reconciled Date field will tell you the date that the bank was last reconciled.

The Last Reconciled Balance field will tell you the balance you reconciled at the date you last reconciled

If you would like help or support with doing your Bank Reconciliation, or any other help with your Sage 50 Accounts software or Sage Lady Academy membership provides affordable training, support and mentoring on all matters relating to Sage 50 Accounts, bookkeeping and accounting principles via training, Masterclasses, and a weekly Live Sage Q&A plus much more. Find out more about our Sage Lady Academy here.

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“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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