Get topic updates

  • Rural Community

    How to reconcile a bank statement that falls over two financial years

    When you're reconciling transactions for the last month of your financial year, it's important to make sure the page only includes transactions up to the last day of that year.

    If the last bank statement for the year also includes transactions dated in the new financial year, you will need to create two reconciled pages to separate the previous year's transactions from the new year.

    This ensures that:

    • Your database records the correct closing bank balance at the end of the year

    • The Accountants report is balanced

    • The opening bank balance for the next year in your cashflow is correct

    Scenario
    Steph has a 30 June balance date.
    She is ready to reconcile her June transactions and notices her bank statement also includes July dated transactions.
    First, she draws a line to separate the 2017 dated transactions from the 2018 dated transactions.
    Then she makes a note of the account balance at 30 June 2017 and also at the end of the statement period.

    0_1500418125412_cd930b2f-67b6-4e5c-b26d-e08a8e62d826-image.png

    How to reconcile the bank statement to the end of the year

    1. Click on the Reconcile button 0_1500419427555_0ec942b3-5a60-41b4-8bd2-39d297e2948a-image.png and record the following:

    2. Statement number you're reconciling.

    3. Opening Balance for the statement.

    4. Closing Balance as at the last day of the financial year.

    5. Statement Closing Date as at the last day of the financial year.
      This is an important step as it will prevent any later dated transactions from sneaking into the page.

    6. Click OK to start reconciling.

    0_1500419411269_d7d8a920-4de2-4604-8883-b70824deb6d9-image.png

    1. Match all transactions that are listed on the statement and up to the recorded closing date.

    The page should balance as the closing balance for the selected period matches the computer closing balance.

    1. Click Done to exit.

    0_1500420118108_217645a0-f4c9-47e9-9f8f-3c0d4ae9103f-image.png

    How to reconcile the remainder of the bank statement

    1. Click on the Reconcile button again.

    2. Create a new page number that still refers to the bank statement but add a ".1". For example, 48.1
      This will help you and your accountant to identify that though there are two pages in your database, they relate to the same physical bank statement.

    3. Opening Balance should match the closing balance of the previous page in Cashmanager i.e. 48.

    4. Closing Balance as at the last day of the statement period.

    5. Statement Closing Date as at the last day of the statement period.

    6. Click OK to start reconciling.

    0_1500421044667_3e7e1219-6a70-409a-9722-3aa7288f5ebb-image.png

    1. Match all remaining transactions that are listed up to the recorded closing date.

    The page should balance as the statement closing balance matches the computer closing balance.

    1. Click Done to complete the process.

    0_1500421142233_51becc3b-9865-4573-ba23-811832dec0ff-image.png

    More end of year info

    End of financial year checklist
    How do I create a new financial year?
    How do I close a financial year?
    How to balance your livestock rec.
    How to record end of year transactions


  • Comments

Log in to reply

Looks like your connection to CRS Community was lost, please wait while we try to reconnect.