Lesson 5 of 5 · 6 min

Reconcile and close the month

Tie the bank, explain cutoff differences, and close the period so nothing posts behind it.

A month is not finished until the bank ties and the period is closed. After that, nothing can post behind the boundary.

Reconcile the bank

Open Bank transactions (reached from Financial › Trust accounting) and choose the account, then Reconcile.
Enter the statement date and statement ending balance.
Tick every item that appears on the statement. What is left is still outstanding.
When the difference is zero, post the reconciliation. An unbalanced reconciliation cannot be posted.

If a difference will not go away, run the Cash cutoff report. It lists journal entries posted into a period but dated after its cash cutoff, the usual explanation for a reconciling item nothing else accounts for.

The Collections list: leases owing, status and amount outstanding. — The screen this lesson works in, from the StrivBridge sample company.

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