Bank reconciliation

Hi - I believe I may have mention before that I am slightly concerned there is not actual bank reconciliation or way of “locking” items that match to the bank statement. We have had a couple of hiccups with double entering bank items (one person entering via supplier and then another uploading bank)
Are you planning to add a feature to cover this sometime in the future please? Even something like the VAT reconcile.
thank you
Great work as always

Once vat return is submitted then that periods gets lock for editing.
Also once a transaction is tagged it cannot be edited unless de-tagged

thanks I appreciate that but many clients only VAT reconcile quarterly whilst bank reconciles are completed at least once a month on regular basis.

Situation you mentioned is about entering two completely different transactions, no software can control this human error.

There’s already a way you can lock your accounts to a specific date in account settings >> account lock date.

If we introduce another lock specific to the bank it adds another layer of complexity which will just confuse novice users (this is a big part of our user-base). Have you considered importing the statement first and tagging from there? That way you’ll never need to reconcile the bank at all?

Hi Glenn - we do actually do the bank reconcile from uploading, we have found a slight complication with regards to bank transfer, one client has several bank accounts - upload and transfer from one bank account, we then uploaded for the other account and it transferred again. Took quite a while to spot the errors as several transfers go through each month.

Not sure I have ever heard an accountant quite so flippant with the fundamentals of accounting. Makes me wonder why AAT, City & Guilds etc., make the poor students sit exams on “Control Accounts” when it cannot be controlled. Might let the poor students know when I teach tonight they needn’t worry when too much, when they are qualified accountants they can forget this subject all together.

hahaha, you are not suppose to touch control sales and purchase ledger through bank any way, it has to be dealt with subsidiary ledgers, some softwares like sage wont allow bank entry direct to control accounts. Payment from customers and to suppliers should be tagged from one particular bank account and any further movements of funds should be tagged as interbank transfers.

Computer and software are good thing but cannot replace human intelligence, they will do what has been instructed, give you an example, i was on audit and found book keeper was booking expenses through invoices and while paying from bank was debiting respective P&L again instead of suppliers account, technically thats not correct and would double the P&L figures but as it is kind of double entry so no way software can give warning or prevent this human error. Hope i manage to clear

Mmm… I know the system will recognise a corresponding amount when you tag as a bank transfer and then just give you the option to link it rather than create a new transaction. That only works if the statements are uploaded for all banks first then tagged afterwards. Have you used the Matching tool on the bank? This allows you to quickly zero in on any discrepancies, it basically allows you to input the open and close balances from the statement and so you can then follow the balance column to see where it becomes skewed. I used it a couple of weeks back as there was a small difference in the balance, I basically went back 3 months and in the end located the double posting.

Bank reconciliation - Matching tool

The main (Number 1) bank account should be the control account and therefore all transfers should be tagged from this account, the system will identify the corresponding transfer, if the statements are uploaded, on the other accounts, if it does not identify the transfer, due to differing dates of debit/credit on the statements i.e. this can occur with credit card payments, the duplicate untagged transaction should be deleted on the credit card account.

No tagging as a transfer should ever been done to the main control account. You can also enter a note at the end of each month to confirm the balance is correct on the bank:


You have definitely made yourself clear. I think I shall leave you to work out what I meant by that