I often get asked ‘Do I need to reconcile my bank account’?
In my opinion, yes, definitely! I believe that you should reconcile your bank account at least once a month, to the penny!
Never adjust even one penny, you need to find where the error is and correct it. If you think about it, if you are out 1p on your reconciliation, it could be 2 errors, one for a credit of £99.99 that is missing and another a debit for £100.00 giving the net difference of 1p. So don’t ever plug a bank reconciliation, it’s not good practice at all.
If you reconcile an account, and find that actually, the account doesn't reconcile, or you have reconciled a transaction by mistake, you can un-do this.
You need to go through the following steps:
- Go to the File menu and choose Maintenance.
- Once in the Maintenance window, click Corrections
- Double click on the transaction you wish to unreconcile.
- Once opened, you will see on the right, that the reconcile box has been ticked, with a date next to it, reflecting the date the transaction was reconciled.
- Un-tick this box, save and the click Yes to confirm that you want to post the change.
The next time you go into your bank reconciliation, this transaction will appear in the bank reconciliation window.
If you don't want to do a bank reconciliation, or are not required to do one, in Sage you do have the option when setting up a bank account, to remove the option to reconcile. If you do this, in the audit trail, the reconciliation flag changes to a ‘-‘.