Bank Reconciliation

Bank Reconciliation

Overview

Bank reconciliation in iVendNext helps verify your financial records by matching system transactions with your bank statement. This article walks you through manual and semi-automatic tools, plus tips for keeping records accurate.



1. What is Bank Reconciliation?

Bank reconciliation is the process of comparing the transactions recorded in your iVendNext account with those in your bank statement. This helps identify discrepancies, such as missing or unmatched transactions, and ensures that your financial records are accurate and up-to-date.


1.1 Importance of Bank Reconciliation

  • Accuracy: Ensures that your financial records match the bank’s records.

  • Fraud Detection: Helps detect unauthorized transactions or errors.

  • Financial Reporting: Provides accurate data for financial reporting and decision-making.


2. How to Perform Bank Reconciliation

2.1 Updating Bank Transaction Dates

  1. Navigate to Home > Accounting > Banking and Payments > Update Bank Transaction Date.

  2. Select your Bank Account and specify the From and To dates for reconciliation.

  3. Click on Get Payment Entries to fetch all "Bank Voucher" type entries.

  4. Update the Clearance Date for each transaction to match your bank statement.

  5. Click on Update Clearance Date to save the changes.


2.2 Bank Reconciliation Report

To verify that your records match the bank statement:


  1. Go to Accounts > Banking and Payments > Bank Reconciliation Statement.

  2. Check the Balance as per bank field to ensure it matches your bank statement.

  3. If there’s a mismatch, it indicates that the Clearance Date has not been updated for some transactions.


3. Reconciliation Tools in iVendNext

iVendNext offers two types of reconciliation tools:


3.1 Manual Reconciliation Tool

The manual reconciliation tool allows you to set clearance dates for payment entries, sales invoice payments, or journal entries manually. This is useful for businesses with fewer transactions or those that prefer manual control over the reconciliation process.

Steps for Manual Reconciliation

  1. Go to Accounts > Banking and Payments > Bank Reconciliation Statement.

  2. Compare the Balance as per bank with your bank statement.

  3. Update the Clearance Date for any unmatched transactions.


3.2 Semi-Automatic Reconciliation Tool

The semi-automatic reconciliation tool is a two-step process that allows you to import bank transactions and reconcile them with existing entries in iVendNext.

3.2.1 Bank Statement Import

  1. Download the bank statement from your bank’s website.

  2. Go to Accounting > Bank Statement > Bank Statement Import.

  3. Select your Company and Bank Account.

  4. Attach the bank statement and map the columns to the corresponding fields in iVendNext.

  5. Click on Start Import to import the transactions.

3.2.2 Bank Account Synchronization

If your bank supports Plaid Integration, you can synchronize your bank account with iVendNext to automatically import transactions.

3.2.3 Automatic Party Matching

You can enable Automatic Party Matching to automatically set the party for bank transactions:


  1. Go to Accounts Settings > Banking > Enable Automatic Party Matching.

  2. Optionally, enable Fuzzy Matching to match parties based on approximate names.

3.2.4 Reconcile the Bank Statement

  1. Go to Accounting > Bank Statement > Bank Reconciliation Tool.

  2. Select your Company, Bank Account, and the Bank Statement Start and End Date.

  3. Ensure that the Opening Balance in iVendNext matches the bank statement.

  4. Enter the Closing Balance of the bank statement.

  5. Match transactions to existing vouchers or create new vouchers to reconcile the difference.


4. Best Practices for Bank Reconciliation

Here’s a quick look at some of the best practices for Bank Reconciliation.


  • Regular Reconciliation: Perform bank reconciliation regularly (e.g., weekly or monthly) to ensure accuracy.

  • Clearance Dates: Always update the Clearance Date for transactions to match your bank statement.

  • Automatic Tools: Use semi-automatic reconciliation tools to save time and reduce errors.

  • Review Discrepancies: Investigate and resolve any discrepancies promptly to maintain accurate records.



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