Reconciliation is the most crucial accounting task that is done to compare the bank statements with the Sage account statements. The main purpose of this to find out the discrepancy between both these accounts. Similarly, you can also reconcile Sage bank account and get a clear vision of your company’s financial wealth.
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Furthermore, if you need the proper stepwise instructions to reconcile your Sage bank account, continue reading this post.
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What is the Relevance of Reconciling Bank Accounts in Sage 50?
The main motive of the bank reconciliation in Sage is to verify the company’s records with their bank statement. Just by matching the statements, it becomes easier to generate financial reports. Thus, it helps the users maintain the proper cash flow statements. Here, we have listed some other benefits of reconciliation.
- By reconciling the bank account, you can easily detect errors and discrepancies in your record.
- Also, it helps to find out the fraudulent activity.
- It also helps in improving the accuracy of the financial statements
- Provides a clear and updated insight into your finances.
- There‘s no denying fact that reconciling bank accounts is a time-consuming task, but it saves your time in the long run. It helps identify and resolve any problems before they become major problems.
Some Important Tips For the Successful Bank Reconciliation
Here, we have discussed some tips you must know to run the bank reconciliation smoothly.
- It is important that you must reconcile your bank account regularly, most preferably monthly or quarterly.
- You must check that your records are up to date.
- Look that you have an accurate and complete record of transactions.
- Always cross-check your work once it is being done.
- Don’t forget to regularly generate a backup of your data to avoid further discrepancies.
Procedure For Reconciling the Bank Account
Before moving further with reconciling the bank accounts in Sage 50, verify that you have added all your transactions till the end date of your bank statement. Read the steps instructed below to get the complete details for reconciling the bank account.
Stage 1: Include Your Statement Summary:-
- In the beginning, move to the Bank Accounts and then choose the appropriate bank account.
- Navigate to the Reconcile option and add the Ending Balance from your statement.
- After this, you have to mention the Statement Date from the statement. This is mainly the end date that your statement goes up.
- You must insert any Interest Earned and the Date within the required text field.
- Also, you have to add the Account Charges and the Date in the required text field.
- Finally, hit the OK button to conclude the entire process.
Stage 2: Examine your Last Reconciled Balance:-
- To examine the last reconciled balance, navigate to the Matched Transactions pane. Then, you have to look for the Last Reconciled Balance.
- Now, you must verify whether the last reconciled balance tally with the opening balance on the bank statement you want to reconcile.
- Choose the “Yes, it doesn’t match” option to move further by matching your transactions.
- Opt for the “No, it doesn’t match” option to determine the reason why the transaction won’t match.
Stage 3: Match Your Transactions:-
You must move to the Un-matched Transactions Pane and perform the following procedure.
- Begin the process by choosing the first transaction displayed on your bank statement.
- After this, hover your cursor over the Match option. It will shift the transaction from the Unmatched transactions pane to the Matched Transactions pane.
- You have to continue applying the first two steps again until all transactions on your bank statements match.
You can post an adjustment if you still haven’t added the transaction to the Sage 50 Cloud Accounts, but it is displayed on your bank statement. If required, you can save the reconciliation, complete it later, and hit Save Progress. After this, choose the Use Saved option to open the saved reconciliation.
Stage 4: Reconciliation Of Your Bank Statement:-
After matching all the relevant transactions, go through the instructions given below.
- Make sure that the Matched Balance and the Statement Balance match.
- You must also verify that the difference between the accounts must be zero. If you find that the difference is zero, hit the Reconcile option. Eventually, it will display a progress bar while the software flags your transaction. Then, it establishes a PDF file of your reconciled statement.
- On the other hand, if you notice that the difference is not zero. In that scenario, you must find out the reason behind it. If required, choose the Save Progress option. Next time you launch the Reconcile window, opt for the Use Saved option to access the saved reconciliation.
Stage 5: View Reconciled Report:-
Go through the following instructions given below to view the reconciled report.
- Primarily, you must choose the Bank Accounts option and then pick the relevant bank account.
- Proceeding further, navigate to the Reconcile option and hit the OK button.
- Afterwards, select the View History option. It will display a PDF file for every reconciliation and the file name representing the bank account and reconciliation date.
- At last, double-tap on the required PDF file to end the process.
So, here we conclude this entire post and hope you can easily reconcile your Sage Bank Account. If you are still struggling while reconciling the accounts, you can consult with our professionals through the live chat facility.
Credit : It should be noted that the tutorial videos we have used above are all the official tutorial videos made by Sage Officials , and that all credit for the videos goes to Sage.