Reconciling Account Activity

Reconciling account activity

Reconciling your bank account(s) is an important part of cash management. Making sure your accounting records match up with your financial institution helps to ensure you know how much money you really have to work with to pay your employees and vendors and yourself!

Even though reconciliations are such an important part of running your business, lots of business owners don't take the time to prove out their cash, instead they real on ATM receipts for their current balances or a quick peek on the bank's online banking site. The only thing wrong with this is that the bank can't report on things they don't know about, like the check your vendor hasn't cashed yet or the stack of checks you just received but haven't gone to the bank yet.

WorkingPoint's new reconciliation feature makes it super easy to match up to your account activity to your bank so you can see what checks or deposits are outstanding and what has cleared, so you can make sure that your money is being tracked and not a penny is slipping through the cracks. 

If you use the new banking integration feature in WP Labs, reconciliation is a cinch as imported transactions are automatically reconciled for you because the transaction originated at the bank. For transactions that are not imported from the bank, you can manually reconcile transactions with simple steps below.

Viewing the Account Activity List
Each entry has a checkmark next to the amount. This checkmark indicates if the transactions has been reconciled:

  • Green checkmarks indicate that the entry has been reconciled to a bank transaction or manually.
  • Grey checkmarks indicate that the entry has not been reconciled.
Clicking the checkmark takes you to the reconciliation window where you can reconcile, match or un-reconcile the entry.

Use the Status filter in the right hand sidebar to view All, Reconciled or Not Reconciled entries. When reconciling your account activity, use the Status filter is a quick way to view entries that have not been reconciled so you can tick through your bank or credit card statement efficiently. You can also you use the date range filter in conjunction with the status filter to view Period and Reconciled Totals at the top of the list: this helps when matching up activity totals to your statements.

To reconcile your account activity:

  1. Go to Accounts, locate the bank or credit card account you wish you reconcile and click the name of the account to view the account activity.
  2. Click the Grey checkmark to open the reconcile window.
    Here you can view any potential matches from your financial institution (if the account is connected to a financial institution and a transactions have been downloaded) that you can select as well as the ability to mark the entry as reconciled. Marking the entry as reconciled means you have verified with your financial institution that the transaction has cleared your bank.
  3. Match or Mark your entry as reconciled.
  • Selecting a match to reconcile the entry
    All potential matches that you have downloaded from your bank will appear in the Select at matching transaction list. If your transaction is listed, click the Select button in the Action column to match to the entry.
OR
  • Mark the entry as reconciled 
    If you have a bank statement that you are using to match your transactions in your WorkingPoint account to your bank, this is a great option for reconciling the account. Simply enter the date the bank cleared the transaction and record a note (optional) and click Mark as Reconciled. 

To undo the reconciliation of account activity:

  1. Go to Accounts, locate the bank or credit card account you wish you reconcile and click the name of the account to view the account activity.
  2. Click the Green checkmark next to the amount of the entry you wish to remove the reconciliation from.
  3. Click Remove Reconciliation.
    The entry will now display a grey checkmark. You can match it to a new transaction or leave it as unreconciled until you can prove out the transaction with your financial institution.
 
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