Month End Reconciling Process for Cash Accounts

Reconciling your accounts each month is an important process to complete so that you have accurate and timely financials. You will want to reconcile each of your balance sheet accounts. However, I recommend focusing on the four main account types, and then working on the rest of the account. The four main account types you will want to make sure to reconcile are Cash, Accounts Receivable, Accounts Payable, and Inventory.

In this blog post I will go through the process we recommend for reconciling your cash accounts each month. In future blog posts I will review the process for Accounts Receivable, Accounts Payable, and Inventory.

In order to reconcile cash – and keep it reconciled – you will need to complete Bank Reconciles on a regular basis. I recommend completing a bank reconcile for each checkbook once a week. Refer to my blog post: How to Reconcile a Bank Statement for more detailed instructions of this process.

Once you finish the last bank reconcile of the month, go to Financial > Series Post, and post all batches (except for any monthly or repeating batches).

Next, print the General Ledger Trial Balance for the Cash Account that corresponds to the checkbook: Financial > Reports > Trial Balance. Reports: Detailed, Options: Month End or default (this will depend on your report options settings). Make sure in the Restrictions section to insert the correct date range for the entire month, as well as the correct account number.  Click Print.

The Adjusted Bank Balance amount located on the Reconciliation Posting Journal report should match the GL Ending Balance. If it doesn’t, the reason is most likely that there are unposted cash receipts that are waiting to be deposited. You can print these transactions by going to: Financial> Transactions > Bank Deposits. In the Bank Deposits window in the Checkbook ID field, you will need to enter the Checkbook ID you are reconciling.  Then click the Mark All button.  Click the Print icon. Close the Bank Deposit window and discard the deposit.

Include the GL Trial Balance, the unposted deposit list (if needed) and the four bank reconcile reports with your month end documents.