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intreptrav
September 29, 2023
Question

Reconciling problem

  • September 29, 2023
  • 1 reply
  • 0 views

I am using Desktop Mac 2021 Version 20.0.12 R13.2

 

I am trying o reconcile a bank statement with a beginning balance of $2,492.23 and an ending balance of $2,653.17. When I enter the ending balance and click "Go" I see that the "Cleared Balance" field is filled in with the "Beginning Balance" amount.

 

I tried to reconcile anyway, thinking that the end result would be a discrepancy equal to the beginning balance and that I could enter an adjustment. (Yes, I know that's not preferred, but . . .)

 

Instead, after clearing the credits and debits I see a discrepancy of $2967.84

 

What's going on? How can I correct the problem?

1 reply

BigRedConsulting
BigRedConsulting
September 29, 2023

RE: When I enter the ending balance and click "Go" I see that the "Cleared Balance" field is filled in with the "Beginning Balance" amount.

 

Yes, that's normal.  The Cleared Balance when you start a reconcile, if nothing is checked off in the two columns of data, is the same as the Beginning Balances, which in turn is the sum of all of the cleared transactions in the account.  As you start marking things that are cleared on the bank statement, the Cleared Balance will change.

 

RE: I tried to reconcile anyway, thinking that the end result would be a discrepancy equal to the beginning balance and that I could enter an adjustment. 

 

You should never need to enter an adjustment. Instead, make the things you're clearing the same as the things on the statement, and then the reconcile will balance. Ever, single, time. That's basically the point of reconciling.

 

RE: How can I correct the problem?

 

Make the things in your bank register match the things on the bank statement.  Then the reconcile will balance.

I
intreptravAuthor
September 30, 2023

Thanks for this, but why when I clear all the items (after double checking that everything on the statement is included in the reconcile window) do I wind up with
Cleared balance -314.67

Difference 2,967.84

BigRedConsulting
BigRedConsulting
September 30, 2023

Well, the formula is:

Starting balance + cleared deposits - cleared checks/payments = ending balance.

 

So, if the starting balance matches your bank statement, then if the cleared things also match, then the ending balance will be right on.

 

Most business bank statements include a total of payment and one of deposits, as does the reconcile window, so that may help.

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