Many reconciliations were inaccurately written and the transaction needs to be deleted. Doing this is a simple process where you post a reversal for the transaction. Sage accounting software is a popular cloud based accounting solution for small and medium business owners offering multiple features for efficient bookkeeping. Bookkeeping is one of the most important aspects for growing businesses. In particular, accounting software like Sage makes it easy. The accounting software are also become adept to Helpdesk modifications during bank reconciliation,
If you struggle with your bank reconciliation, Sage accounting applications can help you. It is natural to make changes to transactions and alter your business records carefully.
In this blog, we will tell you all about bank reconciliation and how to go ahead with making changes during the process so that the company’s financial records remain secure and accurate.
Read also: How to Install Excel Integration Module-EIR in Sage
What is a Change or Delete a Bank Reconciled Transaction ?
Bank reconciliation is the process where the cash balances in the accounting records/ balance sheets of an entity (individual, group or an organization) are matched with those correspondingly present in a bank statement. Bank reconciliation allows you to make sure your financial position is in order. It helps keep your business accountable.
Bank reconciliations are done on a regular basis (monthly / quarterly / semi – yearly / yearly) by organizations due to its multifold advantages. Some of these advantages are as follows-
- It helps in ensuring that the cash records of an organization are correct.
- It prevents the instances of Bounced checks or levying of overdraft fees.
- Bank reconciliation can help in timely detection of any fraudulent activity with respect to the company’s financial resources.
- You get the financial information you need to make smarter decisions and stay within your budget.
How to Change or Delete Bank Reconciled Transactions?
Method 1 – By Manual Reconciliation
The Sage software tells the bank what transactions are present on a bank statement. After that, the bank reconciles the transactions in Sage with those present on their statement. Follow these steps to do a manual reconciliation-
- Click on the Banking tab and choose the relevant bank account link.
- Now from the Bank drop down menu, select the Reconcile option.
- Enter the Statement date, the statement end balance and a reference in the fields.
- If Sage is showing two lists consisting of reconciled and unreconciled entries then you have to move them from unreconciled to reconciled. Click on the Apply button.
- Manually enter bank fees and charges along with the earned interest.
Pro tip: The reconciled balance increases or decreases when entries are being reconciled. The difference between the target balance and the actual balance should ideally be zero.
Method 2 – By Automatic Reconciliation
Automatic reconciliation of bank transactions can be done by connecting the Sage accounting software to your bank feed. By this, the transactions get automatically imported to Sage in the background itself as a bank feed. Or through a csv file as they are set to Cleared by default.
Removing the Reconciled Status
For transactions included in draft reconciliation, you have to open the reconciliation. Locate the transaction and clear the checkbox next to Reconciled column. But in order to reverse a transaction that is not in the Reconcile you must use the following steps.-
- Click Banking and choose the bank account.
- Now click on the drop-down arrow near Connect to Bank or click Reconcile if the bank is connected.
- Locate the transaction from the table, and in the Reconciled column clear the check box.
- For unreconciling everything, choose Unreconcile All Entries from the Interest and charges drop-down menu.
- Click on Finish and choose Save for Later
Change or Deleting a Bank Reconciled Transaction
- If the bank reconciliation process has not been saved, then they could be deleted. But before this make sure that the reconciled status along with the cleared status has been removed.
- A bank reconciliation that has already been saved cannot be deleted. You have to create a transaction with the exact same details in the opposite field. Example – for deleting a transaction in the Other Payment, create a new transaction with the same information in the Other Receipt.
- You cannot delete the receipts and payments that have VAT/GST or are mentioned in a VAT/GST return. For this a reverse transaction has to be created.
People who are serious about taking their business forward and above their competitors understand that undertaking bank reconciliation at regular intervals on their business accounting software is non-negotiable. We hope that at the end of the blog, you have enough information to do your bank reconciliation quickly and easily. If you are still facing any problem while making changes to a bank reconciled transaction, drop a message and our experts will get back to you.
How can I save the bank reconciliation for later?
Click on Save for later from the Finish drop down menu.
What are the options for keeping the bank reconciliation for future reference?
You can save a PDF copy of the bank reconciliation or take a printout for future reference.
What is total received and total paid?
Total received is the net value of inbound transactions while total paid is the value of the outbound transaction.
Why do I have to create an exact transaction in the opposite field if reconciliation has been saved by mistake?
Creating a similar transaction in the opposite field causes the effect of the original transaction to get canceled and your accounts remain accurate.