Reconcile Bank Account
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Reconciling means balancing your checkbook against the bank statement. You can only reconcile bank accounts. Liability and asset accounts are not reconciled. To reconcile, click on Reconcile from the top of the Checkbook Register. The last reconciled balance amount and date will appear, and this amount should match the beginning balance on your bank statement. Find the ending balance and date on the bank statement and enter that date and amount.

ckbkrecon

Upon entering the ending balance of say $10,107.70 for January 31, 2003, a list of unreconciled transactions will be listed in date order with income items first followed by expense items that do not have a check number, and then expense items that do have a check number. A sample Reconcile List is shown on the next page.

Looking at your bank statement, click the
Clear check box in the Reconcile List for each item found on the bank statement. This includes cancelled checks, deposits and bank drafts. If there are items in your bank statement that are not in the Reconcile List, such as the interest earned, exit the Reconcile List and add those transactions to the Checkbook Register. Then click Reconcile again and you can continue where you left off.

ckbkreconlist

Continue the process of clearing the items on the bank statement until the Difference value at upper left is zero. When the Difference value equals zero, the reconciliation process is completed and you click Finished. All items that were checked as Clear will now have C in the "C" column of the Checkbook Register. All uncleared items will be blank or may have an asterisk if the reconciliation was not completed.

If you cannot balance an account, you may have to enter an adjustment amount in the Checkbook Register. For example, if the difference is -8.76, enter a deposit adjustment of 8.76 and mark it with an asterisk. This of course is not normal, but may be required if you can't figure out the problem.