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Bank Account Reconciliation Feature in Sage 50

Creating a Bank Reconciliation Statement on a periodic basis is a very crucial cash-maintaining procedure. It helps to authenticate the balance of the cash displayed on the usual ledger against the particular balance displayed on the bank statement.

Such two balances are hardly equal because of both differences in timing in registering the transactions and any issues that have been occurred. The process of bank account reconciliation can unravel any issues registered in either the bank statements or company books.

In today’s article, We will talk about how a bank reconciliation is conducted in Sage 50. But before that, let us begin by understanding what the benefits of such an accounting procedure are.

What are the Benefits of Reconciling Bank Statement Sage 50?

Sage bank accounts transaction should be in sync with the real bank account to show the right bank balance. It assists in proper cash flow management. Reconciling option in the bank permits you to sync every transaction in the particular Sage account to the given bank statements.

Before you begin bank account reconciliation in your particular Sage 50, you need to make sure that you have completed most of the financial transactions for the period where you are reconciling. Usually, bookkeepers or accountants will reconcile the particular bank balance towards the ending date of every month when they receive the bank statements.

Note: This particular task is easy by reconciling accounts daily, weekly, or monthly via Sage 50.

How to Use the Bank Account Reconciliation Feature in Sage 50?

Primarily, if you are not using the special bank account reconciliation in your Sage 50, then you are making your life complicated unnecessarily. If you wish to make your financial transactions smooth and hassle-free, we highly recommend that you follow the steps given below.

Here is a complete overview of the entire bank account reconciliation process:

  • To begin with, Navigate to the Tasks menu. Now select Account Reconciliation. You can also ping on the Banking tab present on the left side of the Sage 50 screen.
  • Now Press the Button for Reconcile Accounts.
  • When the Reconciliation Screen Appears, Choose the account you wish to Reconcile from the provided list on the top of the screen. Now add the Statement Ending Date.
  • In the bottom of the screen, Add the Ending Balance from the provided Bank Statement. If you wish to add Bank Charges or Interest, Press the Particular double-arrow Button to make the Section Bigger.
  • Now Add them in the Particular Corresponding Fields. Now you need to Check the box Which is near Every item Which is cleared on this Particular Dtatement. When everything is marked in the right manner, the Unreconciled Difference on the Left Dide below will be USD 0.00.

Below mentioned are some of the tips that can make bank account reconciliation in Sage 50 easier:

  • Sort by Any column: Pressing on any column heading will lead to sorting, depending on the column. Press it again in order to reverse the particular sort order. In this manner, you will be easily find transaction by date, amount, or description.
  • Find Button: In case sorting is not that helpful to you, press the Find button on the top of the screen. Now enter whatever you wish to search for. It can be a check number, date, amount, or payee. Just make sure that it is a simple text search, hence, you will be required to enter it as it is on the screen. In case you are searching for Mar. 14th, 2016, then you must enter Mar 15, 2016, instead of 3/14/16. Mar 14 will not be useful since it will locate only half the matches. Not to mention, for any amount, you must add commas.
  • Multiple Button: With the help of the particular Multiple button, it is possible to clear a complete series of transactions in one strike. Select the transaction type and then add a starting and ending reference. You can also add a date range.
  • Import Button: If it is possible for you to download a statement in .OFX format from your particular bank, it is possible to import it here to clear similar transactions automatically.
  • Add New Button: In case a transaction is missing, then the Add New button will provide you with shortcuts to add a particular type of transaction. However, you are not limited to such things. With the older Sage versions, you needed to close the reconciliation to add New Transactions. However, now you can add new transactions when the reconciliation is still functioning. Now, when you check the bank data, it will be fresh automatically.
  • Clear Button: It offers the choice either to clear or unclear the transactions. All in all, if your reconciliations are complicated, then you need to start over. For this purpose, use the un-clear all option.
  • Checks and Bank Debits/Deposits and Bank Credits: On the upper left side, you will witness all the cleared items together with the total dollar cost. When you are experiencing issues getting your particular account reconciled, it will assist you to narrow down the research. Your particular bank statement will provide you with the exact numbers to see if the checks cleared match with the bank and are the same as the deposits. Then you can mention where to search for the issue.

However, you must keep in mind that void checks can be an issue. When you Add a Void Check, Sage 50 adds a matching negative check and then marks them as cleared. The negative check gets entered in the Deposits and Bank Credits. It means both the cleared deposits and checks will be bigger than the bank’s number by 1 transaction and the amount mentioned in the voided check.

Note: If you are facing any issues with your deposits, it is possible that your customer receipts are grouped into deposits in the wrong manner. The bank deposit report that is seen in the Account Reconciliation report group will tell you precisely which receipt is added to every deposit. It is then possible to add the deposit ticket IDs in the Receive Money screen so that the deposit amounts are the same as the ones mentioned in the bank statement.

Hope this article is helpful to you. In this article, we have added all the information needed to successfully reconcile a bank account in Sage 50. Take a proper look and do not skip any point as it may create issues in successful bank account reconciliation in Sage 50.

Still, If you are stuck anywhere or need assistance in performing any step, then you can get in touch with our Sage Experts via LIVE CHAT.

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Frequently Asked Questions

What are the Five Different Types of a Bank Reconciliation?

There are five types of bank reconciliation that are listed below:

• Bank Reconciliation
• Business-specific Reconciliation
• Vendor Reconciliation
• Customer Reconciliation
• Intercompany Reconciliation

How Sage is different from Sage 50?

Sage One and Sage 50 are considered to be market-leading accounting packages targeting their respective markets. While Sage One is perfect for sole traders and small businesses, Sage 50 is perfect for small and mid-sized businesses.