Reconciling impound bank accounts

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Our Support department is closed on Friday, April 28th for a company event. However, limited Accounting CS phone support is available on that date from 9 AM - 5 PM ET due to the approaching deadline for quarterly payroll tax forms.

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You can reconcile the firm impound bank accounts using the Reconcile Impound Bank Accounts screen.

See also: Bank account reconciliation overview

Before you can reconcile an impound bank account, you must set up at least one account as an impound account.

  1. Choose Actions > Reconcile Impound Bank Accounts.

    The Reconciliations list at the top of the screen includes all current, finalized, and pending reconciliations (denoted by status icons). You can filter the list of reconciliations or search for a specific reconciliation.

  2. Select the account to reconcile, either by choosing it in the Reconciliations list or by selecting it in the Account section of the General Information tab.
  3. In the General Information tab, enter the information from your paper statement in the fields in Statement Information section. The application uses this information to reconcile the transactions recorded in Accounting CS to the transactions on the bank statement. For subsequent reconciliations, the application automatically advances the statement dates and uses the prior statement's ending balance as the beginning balance.

    Note: If this is the first time you have reconciled this account, you may need to include in-transit items from the previous bank statement. Accounting CS assumes that these transactions are included in the balance for the impound account. Choose Edit > Initial Open Items to enter the in-transit deposits and checks. Any transactions that are not included in the balance will need to be entered and funded.

  4. If your financial institution allows you to download bank statements in one of the supported file formats (OFX, QFX, QIF, or BAI2), use the Bank Statement Import tab to import transactions from the bank statement.
  5. Use the Deposits & Additions tab, the Checks & Payments tab, and the Direct Deposit tab to view and/or clear credits, debits, and direct deposit amounts that appear in those tabs. You can see immediately how clearing the items affects the unreconciled amount below the data-entry grids in the totals section.

    Use any of the following methods to clear (or unclear) a transaction.

    • In the Deposits & Additions tab and the Direct Deposit tab, mark the checkbox for the transaction in the Clr column or press the SPACE bar on your keyboard.
    • In the Checks & Payments tab, mark the checkbox for the transaction row, or enter an amount in the Clear For column.
    • Choose a clear / unclear command from the Edit menu.
      • Clear
      • Clear All
      • Clear All Grouped
      • Unclear
      • Unclear All
      • Unclear All Grouped
      • Clear Ranges of Checks (from the Checks & Payments tab only)

    Note: To clear the transaction in the Checks & Payments tab for an amount other than the full transaction amount, enter the applicable amount in the Clear For column. The application displays the difference in the Adjustment column. You can then enter the GL account to which the difference should be applied and an explanation in the Adjustment Description column. You clear a transaction for a zero-amount, which essentially has the same effect as voiding it.

  6. Use the Account Summary tab to view the balances and differences in the reconciliation. Click the Adjustment button to make an adjusting entry for the unreconciled amount, if necessary.
  7. Use the Reconciliation Analysis tab to view a summary of the reconciliation. The Notes section provides suggestions on how to balance the reconciliation. You can print this information by choosing Print Notes from the right-click context menu.
  8. Use the Edit menu to open various other dialogs to assist in the reconciliation. Depending on which tab is active, the following dialogs may be available.
  9. When the unreconciled amount for the bank account is zero, click the Finalize button to finalize the bank reconciliation for this account.

Notes

  • Before you can close the reconciliation or move to another screen, you must click the Finish Later (to save the work-in-progress reconciliation without finalizing it), Finalize, or Cancel (to revert all changes made since the reconciliation was last saved) button.
  • You can finalize the bank reconciliation even if the unreconciled amount for the account is not zero, if you choose.
  • A GL account is not required in the setup of your impound bank accounts. If a GL account is not assigned, the reconciled bank account total will not match the adjusted period balance, thus creating an unreconciled amount.
  • If you find that you need to edit a reconciliation that has already been finalized, highlight it in the Reconciliations list and choose Edit > Unfinalize Reconciliation. This will change the reconciliation status to Pending for the selected reconciliation and any reconciliations completed after the newly unfinalized statement. After you make the necessary corrections, be sure to finalize the statement and all subsequent pending reconciliations.
  • If you are unable to reconcile an account, you may find it helpful to run the Impound Client Activity report. If the ending balance on the report differs from the ending balance for the reconciliation, there may be transactions that are dated for one period but posted to another. Verify the transaction date and posting period for each transaction.

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