How to Do a Bank Reconciliation in AutoCount

Performing a bank reconciliation ensures your company’s cash records match the bank’s records, a fundamental process for accurate financial reporting. This guide walks you through every step of completing a bank reconciliation in AutoCount Accounting, from initial setup to finalizing your report. We will cover how to handle common discrepancies like bank charges, outstanding checks, and data entry errors to get your books in perfect order.

Why Bank Reconciliation is a Non-Negotiable Task

Before diving into the "how," let's quickly touch on the "why." A bank reconciliation is more than just a monthly chore; it's a vital health check for your business finances. It confirms the accuracy of your cash balance, which is often the most significant asset on your balance sheet. Regularly reconciling helps you spot potential issues early, such as a miskeyed payment, a missed deposit, or even fraudulent activity. It also provides a clear picture of your actual cash flow by identifying outstanding payments and deposits in transit, allowing for better financial planning and decision-making.

Preparing for Reconciliation in AutoCount

Success in any task starts with proper preparation. Before you open the reconciliation module, gather the documents and information you will need. This small preliminary step will make the entire process much smoother and faster.

1. Gather Your Documents

You will need your bank statement for the period you intend to reconcile (e.g., the last calendar month). This can be a physical paper statement or a digital PDF/CSV file downloaded from your online banking portal. Ensure it covers the complete period, from the first day to the last.

2. Verify Data Entry in AutoCount

The bank reconciliation process compares your records against the bank's, so your records must be up-to-date. Ensure all transactions for the period—both cash in and cash out—have been entered into AutoCount. This includes:

• Payment Vouchers: All checks issued, electronic funds transfers (EFTs), and other payments made to suppliers and vendors.
• Official Receipts: All customer payments, cash sales, and other deposits received.
• Journal Entries: Any general journal entries that affect the bank account, such as bank loan payments or owner contributions.

Reconciling with incomplete data is a recipe for frustration. A quick review of your entries for the month can save you a significant amount of troubleshooting time later on.

Step-by-Step: Performing a Bank Reconciliation in AutoCount

With your bank statement and updated books in hand, you're ready to begin the reconciliation. AutoCount provides a dedicated module designed to make this process systematic and clear.

1. Access the Bank Reconciliation Module

First, you need to open the bank reconciliation window. The navigation is straightforward:

1. From the top menu bar in AutoCount, click on G/L (General Ledger).
2. From the dropdown menu, select Bank Reconciliation.
3. A new window will appear. Here, you need to select the specific bank account you wish to reconcile from the Bank Account dropdown list.
4. The system will automatically suggest a new reconciliation period. You can proceed with this or select a prior unreconciled month if you are catching up on old records.

After selecting your bank and period, click "OK" or "Create." This will open the main reconciliation screen.

2. Enter Your Bank Statement Information

The reconciliation screen's first task is to tell AutoCount what the bank says your closing balance is. Look for fields at the top or bottom of the screen typically labeled:

• Bank Statement Date or Statement End Date: Enter the end date of your bank statement (e.g., 31/01/2024).
• Bank Statement Balance or Statement End Balance: Enter the closing balance exactly as it appears on your bank statement.

This closing balance is your target. Your goal is to make your adjusted book balance match this number by accounting for all outstanding items.

3. The Reconciliation Process: Matching Transactions

The AutoCount reconciliation screen is typically divided into two main sections, representing money leaving your account and money entering it. On one side you'll see a list of payments (debits) recorded in your books, and on the other, you'll see receipts (credits).

Your job now is to go through your bank statement line-by-line and "tick" or "clear" the corresponding transaction in the AutoCount window.

• Compare and Tick: For each transaction on your bank statement, find the matching entry in the AutoCount list. This includes deposits, cleared checks, and electronic payments. When you find a match, check the box next to it in AutoCount. As you tick items, you will see a "Difference" or "Unreconciled" balance change.
• Work Methodically: Start with the easy transactions—those where the date and amount match perfectly. Move from receipts/credits to payments/debits, or whichever order is most comfortable for you. The key is to be systematic to ensure nothing is missed.

4. Handling Discrepancies and Unmatched Items

Inevitably, you will find items on your bank statement that aren't in your books, or vice versa. These reconciling items are the very reason you perform a reconciliation. Here’s how to handle the most common ones:

Outstanding Checks and Deposits in Transit

These are timing differences. The most common reconciling items are transactions you have recorded but that haven't been processed by the bank by the statement end date.

• Outstanding Checks: These are checks you have written and recorded as payments in AutoCount, but the recipient hasn't cashed or deposited them yet. They will appear in your AutoCount payment list but not on the bank statement. Do not tick these items. They will remain as part of your reconciling items and are a perfectly normal part of the process.
• Deposits in Transit: These are payments you received and recorded in AutoCount near the end of the month, but they were deposited too late to appear on the current bank statement. Do not tick these items either. They will appear on the following month's statement, and you will tick them then.

Bank Charges, Interest, and Other Bank-Only Items

Your bank statement may show items that you haven't yet recorded in AutoCount. These need to be added to your books.

• Examples: Monthly bank service fees, check printing charges, loan interest payments, or interest earned on your account balance.
• How to record them: For these items, you need to create a new transaction in AutoCount. You can typically do this by opening a new window for a Payment Voucher (for fees or charges) or an Official Receipt/Cash Book Entry (for interest earned). Fill in the date, amount, description, and assign it to the correct expense or income account (e.g., "Bank Charges" or "Interest Income"). Once you save this new entry, it will appear in your reconciliation window, and you can tick it as cleared.

Errors and Omissions

Mistakes happen. A reconciliation is your chance to catch and correct them.

• Errors in Your Books: If you find a transaction where the amount in AutoCount does not match the amount on the bank statement (e.g., a payment recorded as $54 instead of $45), you need to fix your original entry. Go to the source document (e.g., the specific Payment Voucher), correct the amount, and save it. Then, return to the reconciliation window, and the corrected transaction should be ready to be ticked.
• Bank Errors: Though rare, banks can make mistakes. If you discover a legitimate error on the bank's part (e.g., a duplicate charge or an incorrect withdrawal), do not adjust your books. Contact your bank immediately to have them correct it. The item will remain as a reconciling item until the bank issues a correction, which will then appear on a future statement.

5. Finalizing the Reconciliation

Once you have ticked all matching items and recorded all necessary adjustments, look at the "Difference" or "Unreconciled Amount" field in the AutoCount window. If it shows 0.00, congratulations! Your account is reconciled.

This zero balance confirms that:

Your Book Balance +/– Your Reconciling Items = Your Bank Statement Balance

The final step is to save and print the reconciliation report.

• Save and Post: Use the "Save" or "Post Reconciliation" button. This officially finalizes the reconciliation for the period and often prevents the cleared transactions from being accidentally edited or deleted.
• Print the Report: Always generate the Bank Reconciliation Report. This document is a critical part of your financial records and audit trail. It summarizes the starting and ending balances, lists all cleared transactions, and provides details of all outstanding checks and deposits in transit. Save a digital (PDF) and/or physical copy for your records.

Final Thoughts

The bank reconciliation function in AutoCount provides a structured framework for a crucial accounting task. By systematically comparing your records to the bank statement, addressing discrepancies, and accounting for timing differences, you ensure your cash records are precise and reliable. Making this a consistent monthly habit will strengthen your firm's financial controls significantly.

During a reconciliation, you might uncover a transaction with confusing tax consequences, like a payment to an overseas vendor or a fee that may or may not be deductible. Instead of pausing your workflow to search outdated forums or dense government sites, you can simply ask for clarification. Using a tool like Feather AI provides citation-backed answers from authoritative tax law in seconds, ensuring both your books and your tax positions remain accurate and defensible.