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Bank reconciliation, account reconciliation and journal entries

This advanced accounting screen brings together day-to-day bookkeeping tasks: bank reconciliation (matching your entries to the statement), account reconciliation (linking an invoice to its payment), manual entries (miscellaneous transactions), entry templates and subscriptions, multi-currency management, and year-end closing. It complements the trial balance, general ledger and FEC available elsewhere.

What it is for

Once sales and purchases have been recorded, the accountant must reconcile the accounts with actual transactions: check that each line on the bank statement corresponds to a journal entry (reconciliation), link each invoice to its payment to determine what remains outstanding (account reconciliation), enter miscellaneous transactions that do not relate to either a sale or a purchase (manual entries / MEs), and finally close the financial year. This screen groups these tasks into tabs. Reconciliation takes place automatically when the invoice number appears in the bank statement description, and manually otherwise. Account reconciliation balances trade receivables and payables. Templates allow you to repeat a recurring entry (such as a subscription) without having to re-enter everything. Closing the financial year locks the accounts and calculates the profit or loss. The module forms part of the advanced accounting system and is activated via a dedicated setting.