• paul
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  • From: USA, Columbia
  • Registered: 07/22/2019
  • Posts: 106

Topic: First Time Bank Reconciliation With Existing Account

I have read this Forum Post and I'm still trying to figure out how this is supposed to work: If moving to Front Accounting from another system and enter end-of-period open balances in FA, how do I reconcile the bank transactions that occurred the previous month, but was not reconciled in the previous system.

  Do I just disregard these past/unreconciled transactions for the first time only? Do I fudge the start balance to omit these transactions?

Thanks

  • From: USA
  • Registered: 03/05/2018
  • Posts: 123

Re: First Time Bank Reconciliation With Existing Account

If I understand what you are saying, your balance carried forward should account for transactions in the previous period. You should have reconciled the earlier transactions in the previous system before you determined the opening balance for FA, so you should only have to reconcile transactions that occur after the switch.

There is no way to reconcile transactions that aren't in the system.

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  • paul
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  • From: USA, Columbia
  • Registered: 07/22/2019
  • Posts: 106

Re: First Time Bank Reconciliation With Existing Account

I must need to think about this more.

   One of my main bank statements runs from the 16th of last month to the 15th of the this month. If I write a $50 check on the 10th of this month, it probably won't make it on the statement closing on the 15th of this, but that check will be posted to my bank account's register, reducing the balance by $50. My current balance sheet reflects the $50 out. If I take my balance sheet amounts and use those for the opening balances in FA, my next bank statement will have a $50 check that won't be shown in FA's bank statement account. I'm missing something (again).

  • From: USA
  • Registered: 03/05/2018
  • Posts: 123

Re: First Time Bank Reconciliation With Existing Account

Reconciling an account involves accounting for outstanding items. I'm not sure where exactly the problem lies?

You reconcile the items on the statement expecting to reach the balance on the statement, then you add/subtract outstanding items to get to the current balance you will carry forward.

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  • paul
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  • From: USA, Columbia
  • Registered: 07/22/2019
  • Posts: 106

Re: First Time Bank Reconciliation With Existing Account

I'm sure I am missing something, but this is a simplified version of what I think is going to happen:

  I reconcile the last statement on the current system except the last check written is not on that bank statement. My bank account had $200 balance per that statement which is now reconciled. Since the last check for $50 is in my system, my account now has a balance of $150.00. If I start using FrontAccounting with an opening balance of $150.00 (per the final balance sheet report), my next bank statement will have a starting balance of $200 with a $50 check to reconcile thereby reducing the balance to $150.00. But my bank balance is already at $150.00 with no $50 check.

  If the above is accurate, should I just reconcile my first statement by entering $150.00 for the starting balance (even though the bank statement indicates $200 starting balance) and $150.00 for the ending balance? Again, simplified version.