First Time doing a Bank Rec. General Accounting>Bank Reconciliation

Question:

This is my first time doing bank statements. I know that we have to set a beginning balance, but I just wanted a second opinion before I completed the bank statement to make sure I didn't forget something.

Answer:

When you start up Bank Rec., you need to create a Bank Rec. prior to the first live one. On that one, clear all transactions that should be cleared. Then, in the chart of accounts, enter a balance forward on the bank account that will change the ending balance of that initial Bank Rec. to be what it should be for your first Bank Rec.

For example: If your first Bank Rec. was to be for December, create a Bank Rec. ending 11/30/2009 and clear all transactions in the system that should be cleared as of that date. Let's say the ending balance of the 11/30/2009 Bank Rec. was 60,000 but in real life you want the balance forward into 12/1/2009 to be 70,000. Make the balance forward in the chart of accounts 10,000.