A
bank reconciliation is the mechanism by which the correctness of the
transactions in
ContactsLaw is verified. A bank statement is used to cross-check each transaction. When the date and amount are confirmed, the electronic transaction is ticked (included in the reconciliation). When all transactions on the bank statement have been ticked (along with any cancelled cheques that fall within the period) and the target balance, debits and credits match, the reconciliation is finalised.
Once finalised, all included transactions are locked from further editing or deletion. Unreconciled transactions within the period may be deleted, retained or re-dated, depending on their type and legitimacy.
The process of reconciliation is aided by the following accounting features:
Within the relevant reconciliation
activity, the following features are provided:
- The ability to associate a document with the reconciliation (usually the bank statement)
- A 'find' feature to match against descriptions, amounts, references, etc
- The ability to save a draft reconciliation for future completion
- Shortcuts to add missing transactions