How do I create and complete a reconciliation in the Financials feature?

How Do I Create and Complete a Reconciliation?

What Is a Reconciliation?

A reconciliation accounts for completed and uncleared transactions on an individual account during a specific month.

• A finalized reconciliation shows $0 as the difference between the ending statement balance and the book balance.
• The book balance is the net amount in an account after all uncleared transactions have been subtracted from it.
• An uncleared transaction is one that doesn't appear on that month's bank statement because it happened before or after the statement period — for example, an unpaid outgoing invoice or a very recent purchase.

Step 1: Start a New Reconciliation

1. 1. Click on the Financials tab to open it.
   2. Click on the Reconciliations tab to view the "RECONCILIATIONS" summary screen.
   3. Click the +Add New Reconciliation button.

 Step 2: Enter Reconciliation Details

In the "RECONCILIATION DETAILS" window:

1. Click the Account dropdown menu and choose the account you want to reconcile.
   • If you've completed a previous reconciliation for this account, a "Last reconciled" date displays to the right of the Account dropdown.
   • If a previous reconciliation for the same account is still Pending and its difference doesn't equal $0, the system will block you from opening a new one until that's resolved.
2. In the Ending Balance box, enter the amount the account should contain after all relevant cleared and uncleared transactions have been added to or subtracted from your statement balance.
3. In the Ending Date box, select the effective date of the ending balance. This may be the same as, or different from, the date on your statement.
4. Click Save to proceed.

 Step 3: Review the Reconciliation Summary

After saving, the reconciliation's details screen appears with an information overview showing:

• Beginning balance for the account
• Sum of all payments and deposits
• Sum of all cleared transactions
• Ending statement balance
• Sum of all uncleared transactions
• Book balance of the account
• Difference between the ending statement balance and the book balance

Notes on how transaction types display:

• Credit card payment type charges display as (+) positive payment transactions; statement payments display as (-) negative deposits.
• The opposite is true for bank transactions: charges display as (-) negative values, and deposits display as (+) positive deposits.

 Step 4: Clear Transactions

Below the summary, the reconciliation details screen lists the transactions recorded as paid through this account during the reconciliation period.

• Click Payments to view only payments, Deposits to view only deposits, or All to view everything.
• The list shows transaction date, type, account, payee, and amount. Use the three-dots Actions menu on a transaction to edit or delete it.
• To clear an individual transaction and apply it to the reconciliation, activate the checkbox after its amount.
• To clear all transactions in the list at once, activate the checkbox next to the "AMOUNT" column header.
• Transactions that don't clear during a reconciliation period automatically carry over to the next period.
• If a transaction is missing, click +Add Transaction below the list to open the "ADD TRANSACTION" window. If you designate the new transaction as paid through the account you're reconciling during this period, it will appear in the list once created.

 Step 5: Finish or Save the Reconciliation

• If the Difference equals $0, the Finish Reconciliation button becomes active (royal blue). Click it to complete the process — the reconciliation's status changes from Pending to Completed, and you return to the RECONCILIATIONS window.
• If the difference does not equal $0, or you need to make further adjustments, click Save & Finish Later to return to the RECONCILIATIONS window and pick up where you left off.