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GSTJournal Account Reconciliations

An account reconciliation done on a regular basis will agree your books with the account you are using to operate from (usually bank accounts).

The spreadsheets may not arrive at the same balance as the account for a number of reasons including entering the wrong opening balance, a mistake in a figure such as entering a wrong amount in the account column or another reason such as outstanding cheques or deposits.

Outstanding cheques are cheques written out but not yet presented and outstanding deposits are amounts you have received but not yet deposited.

The first step in reconciling to the account is to make sure you have written into the cash book all the account charges and other items appearing on the account statement such as interest etc, then mark any outstanding cheques or receipts as such in the reconciled column. U or u is for unpresented amounts in the current year and P or p is for amounts unpresented in the prior year. There is a special column to post prior year amounts to.

When entering data from an account view the account balance in the cashbook and check that the bank balance is the same as the statement balance.