The bank reconciliation feature in Sage 50 lets users match the transactions recorded in the bank statements with those entered into Sage 50 Accounts. If you are handling your business accounting with the Sage 50 application, it is important to reconcile your bank to keep your transactions accurate. It helps you identify the discrepancies in the recorded transactions so that you can rectify them and maintain an accurate record of your financial transactions. This post elaborates on how to reconcile your bank account with the Sage 50 application. Let’s start!
Why It Is Important To Reconcile Bank With Sage 50?
Reconciling the bank to your accounting application ensures that your financial records match the bank statements. Also, it helps ensure that the charges and interest payments are recorded in Sage 50. This is done by comparing the transactions in order to match them. By matching them, you can track your financial performance and manage your tax reporting with the utmost confidence. Moreover, you can also identify fraudulent transactions and delayed cheque clearances through this feature.
How To Enable Bank Reconciliation in Sage 50?
Reconciliation starts when you have already entered all your bank transactions up to the end date of your bank statement into the Sage 50 application. Thereafter, you need to implement the following steps for Sage 50 bank reconciliation:
Step 1: Initiate The Process By Entering Your Statement Summary
First things first, you need to enter your statement summary, and you can accomplish it with these steps:
• When in the Sage 50 application, click on the Bank Accounts option and then click on the bank account you want to reconcile.
• Thereafter, click the Reconcile button to move ahead.
• If you are getting a message that says the bank account doesn’t require the bank reconciliation, you need to disable this setting.
• Moving ahead, you are supposed to enter the Ending Balance in this step.
• After that, provide the Statement Date from your statement. It will be considered as the end date for the statement.
• Now, fill in the Interest Earned box and Date for the same.
• Moving ahead, enter any Account Charges (if any) and then the Date for it.
• Finally, click OK to finish.
Note: If you want to make any changes to the entered information, you can use the Edit option given as a Pencil icon.
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Step 2: Check The Balance You Last Reconciled
In the next step, you need to check your last reconciled balance with these steps:
• Navigate to the Matched transactions pane, and then click your Last reconciled balance.
• Now, examine if the last reconciled balance is the same as your opening balance on the statement you are reconciling. If yes, you can move to the next step.
• If not, you need to figure out the possible reason behind this discrepancy.
Step 3: Move Ahead and Match Your Transactions
After checking your last reconciled balance, you need to match your transactions.
• Navigate to the Un-matched Transactions pane and select the first transaction you see on the bank statement.
• Thereafter, click the Match tab.
• It will then be moved to the Matched Transaction pane from the Unmatched.
• Now, repeat the same process for all the transactions one after the other.
• If a transaction is not entered into your Sage 50 accounting application, you can post an adjustment option to enter it.
• You can save the reconciliation at any point and then click Save Progress.
• If you want to work on the same, click the Use Saved option.
• Also, you can check the list of unmatched items by clicking on the Report button.
Step 4: Reconcile Your Bank Statement
After reaching this point, you can match all the relevant transactions from the bank:
• Here, you need to ensure that Matched Balance and Statement Balance are the same.
• In the same manner, the difference between the two different statements must be zero.
• Click Reconcile if the difference is Zero.
• If the difference is not zero, you need to analyze why the difference is not zero between the two.
• Click Save Progress, which you can later access through the Use Saved option.
Final Step: View The Reconciliation Report
In the final step of the Sage 50 bank reconciliation, you are recommended to view your reconciliation report. However, this step is optional.
• Click Bank Accounts in the first place, and then click the account that is being reconciled.
• Next, click on the Reconcile option and then hit the OK button.
• Thereafter, click on the View History option.
It will show up a PDF file containing the file name, bank account, and reconciliation date.
Final Words!
The steps we have discussed in this post will help you with the Sage 50 bank reconciliation process. Thus, you can maintain the accuracy of your financial transactions and make sure that they are correctly recorded in your accounting application. If you need further assistance, reach out to the Sage 50 knowledge center or contact professionals to acquire instant help.
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