Reconcile your bank account

Summary

How to match your transactions to your bank account with Sage Accounting.

Description

We recommend regularly reconciling your bank accounts. This makes sure your bank account balance matches your actual bank account and your reports are accurate.

NOTE: You can't reconcile Cash bank accounts.

Resolution

Before you start

Make sure you have your bank statement at hand as you will need this.

Record other transactions

Before you reconcile, make sure you record all bank transactions using one of the following methods:

How to reconcile

Bank reconciliation ensures transactions in Sage Accounting match your bank statement, confirming your bank balance is correct.

Enter the closing balance from your bank statement. Verify all transactions match. If they do, the total of reconciled transactions plus the starting balance will equal the closing balance, showing a zero difference.

From Banking, open the bank account you want to reconcile.
Choose the Reconcile link.

Enter your statement details

Statement Date, enter the end date from your bank statement.
We only show transactions up to the statement date you enter. If transactions are missing, or you have too many transactions, check your statement date.
Statement End Balance - Enter the closing balance from your bank statement.
Reference - Add a reference such as the reference from your bank statement. This is optional.
Select Apply. This updates the reconciliation details below.

Add interest and charges

If your bank feed or statement import includes fees or charges, ignore this step.

Select Interest and Charges to enter the details.

Use the options to record interest paid, interest received, and bank charges.

Enter an amount in the relevant box to record a Bank Charge, Interest Charge or Interest Earned.
Enter the date the transaction took place in the Date box.
Select Save.

Reconcile your transactions

If you use a bank feed or import your bank statement, the system already selects your transactions. Simply check the balances match in the Summary section at the bottom.

To reconcile your transactions:

Check each transaction against your bank statement.
If the transaction matches, select the check in the Reconcile column.
To reconcile all transactions at once, and choose Reconcile All Entries from the drop-down.

As you reconcile each transaction, the reconciled balances update at the bottom of the screen.

Save as a draft

You can save the reconciliation at any point. This is useful if you need to stop and come back to complete it later.

To save a reconciliation as a draft, select the drop-down arrow next to Finish and choose Save for later.

Finish the draft reconciliation before you can start a new one. Select Discard if you need to delete and start the reconciliation again.

To come back to the saved reconciliation, just select the Reconcile link. The saved reconciliation opens automatically.

Finish the reconciliation

The reconciliation is complete once you have:

Reconciled all transactions
The reconciled balance matches the target balance
The difference is zero

Once the reconciliation is complete, choose Finish.

When you choose Finish, we mark all transactions as reconciled to prevent their inclusion in another reconciliation.

Find details of completed reconciliations from the Reconciliations tab.

Change reconciled transactions

NOTE: Once you`ve saved your reconciliation, you can't delete the whole reconciliation. If you've made a mistake, you'll need to use the following correction methods.

If you have made a mistake and need to edit a reconciled transaction, there's certain information you can edit. Otherwise, delete the transaction and re-enter it.

You can edit the Reference, Description and Ledger Account. Read more from Edit reconciled transactions
To change to a date outside the reconciliation period, delete the transaction and re-enter it. Read more from Edit reconciled transactions
If the bank account or amount is incorrect, delete the transaction and re-enter it. Read more from Delete bank transactions in the UK or Delete bank transactions in Ireland

Read more from Reverse a bank transfer or cash deposit in the UK or Reverse a bank transfer or cash deposit In Ireland

You can't edit or delete any transactions included in a VAT return. Read more from Correct transactions included on a VAT return in the UK, or Correct transactions included on a VAT return in Ireland.

When the difference isn't zero

When the difference isn't zero, this can be for several reasons, read Why a bank account doesn't reconcile.

Reconcile your bank account

Summary

Description

Resolution

Before you start

Record other transactions

How to reconcile

Enter your statement details

Add interest and charges

Reconcile your transactions

Save as a draft

Finish the reconciliation

Change reconciled transactions

When the difference isn't zero

Related Solutions

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FAQs

Reconcile your bank account

Summary

Description

Resolution

﻿Before you start

Record other transactions

How to reconcile

Enter your statement details

Add interest and charges

Reconcile your transactions

Save as a draft

Finish the reconciliation

Change reconciled transactions

When the difference isn't zero

Related Solutions

Before you start