Reconcile your bank account

This explains how to reconcile your bank account with Accounting Start.

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

Before you start

Make sure you have your bank statement handy as you'll need this.

Reconciliation terms explained

Here is an explanation of the terms used on the reconciliation page and how we use them.

How to reconcile

The purpose of bank reconciliation is make sure the transactions entered in Accounting Start, match the transactions on your bank statement. This makes sure that your bank balance is correct.

To do this, enter the closing balance from your bank statement. Then check all the transactions match the bank statement. If everything matches, the total of all reconciled transactions added to the starting balance will match the closing balance. To confirm this the difference will be zero.

  1. From Banking, open the bank account you want to reconcile.

  2. Choose the Reconcile link.

Enter your statement details

It is important that you enter this information correctly. The information you enter here affects which transactions you see, and the target balance for the bank reconciliation.

  1. 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.

  2. Statement End Balance - Enter the closing balance from your bank statement.

  3. Reference - Add a reference such as the reference from your bank statement. This is optional.

  4. Select Apply. This updates the reconciliation details below.

Add interest and charges

It’s easy to add interest and charges right at the start of your reconciliation. Any interest or charges you add here are automatically marked as reconciled too.

If you use a bank feed or import from bank statement, it's likely that your will have already imported any fees or charges already, so ignore this step.

Select Interest and Charges to enter the details

Use the available options to record interest paid and received, as well as normal bank charges.

  1. Enter an amount in the relevant box to record a Bank Charge, Interest Charge or Interest Earned as needed.

  2. Enter the date the transaction took place in the Date box.

  3. Click Save.

Reconcile your transactions

You can reconcile all entries at once which may save time but can take longer to identify errors.

If you use a bank feed or import from your bank statement, your imported transactions are already selected as they have come from your bank account. Simply check the balances match in the Summary section at bottom.

To reconcile your transactions:

  1. Check each transaction against your bank statement.

  2. If the transaction matches, select the check in the Reconcile column

  3. To reconcile all transactions at once, select the drop-down arrow next to Interest and Charges and choose Reconcile All Entries

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.

You must finish the draft reconciliation before you can start a new one.

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

Un-reconcile transactions

You cannot unreconcile transactions once you choose Finish.

You can unreconcile transactions when you save the reconciliation as a draft.

  • To unreconcile all transactions at once, select the drop-down arrow next to Interest and Charges and choose Unreconcile All Entries.

  • To unreconcile each transaction separately, select the check box in the Reconcile column. This removes the tick and reconciles the transaction.

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 so they are not included in another reconciliation.

  • You cannot reverse or delete the reconciliation.

  • You cannot unreconcile individual transactions.

Find details of completed reconciliations from the Reconciliations tab.

Change reconciled transactions

If you have made a mistake and need to edit a reconciled transactions, you can edit certain information, otherwise delete the transaction and re-enter it.

You cannot delete a reconciled bank transfer, you need to reverse it instead. Read more from Reverse a bank transfer or cash deposit.

You cannot edit or delete any transactions that have been included on a VAT return. Read more from Correct transactions included on a VAT return

When the difference is not zero

When the difference is not zero, this can be because

  • The statement end date is not correct.

  • The statement end balance is not correct.

  • Some transactions have a different date to your bank account.

  • The starting balance does not match the opening balance on your bank statement.

  • A previous reconciliation was saved with a difference.

  • A previous reconciliation was saved with the wrong date.

For more details on how to resolve this read Why a bank account doesn't reconcile