Reconciling the Checking Account

Navigate to Reconcile

When your “Next Step” Button says “Reconcile Bank Statements,” click on it, or click Reconcile above Reports & Graphs.

This will open the Bank Reconciliation introduction screen.

This screen lists your active bank accounts, the last time each account was reconciled (“Reconciled Through”), the most recent ending balance (“Ending Balance”) and how often this bank account will be reconciled (“Statement Frequency”) which then gives you the “Next Date.” (If you need to edit the “Statement Frequency”, click here.)

To start, find and double click on the bank account that you are ready to reconcile.

Verify the "Bank Account" Box

Verify the correct “Ending Date" from the bank statement. That date should be the final day of the month that you are reconciling. Your statement may use “Current Date” or some other term.

• If your statement ends on the last business day of the month, enter the final day of the month in Jewel instead.

Double check the “Beginning Balance” on the bank statement, then on Jewel, to verify that they match.

If they do not, stop and figure out why.

Find the “Ending Balance” on the bank statement and enter it in Jewel.

• Sometimes the statement calls it “Current Balance” or “Final Balance” or something similar, but it will be in the top section of the statement where the month’s checks and deposits are summarized.

NOTE: Your “Ending Balance” should always come from the statement. Never adjust the “Ending Balance” to make your bank rec “Difference” equal zero. Entering the exact “Ending Balance” from the bank statement of the exact month that you are reconciling will ensure accurate reports.

Mark Off the Deposits

Locate the deposits that are on the bank statement. Some banks list them separately from the checks, some do not.

• Pick the first deposit on the statement and then look on the Jewel bank rec screen to see if it is there.

• If it is in Jewel, click the box next to that deposit and also put a mark next to that deposit on the statement to indicate that it has been cleared. (“Show More Deposits” is useful if the deposit list is lengthy.)

• Make sure the deposit total that is on the statement is exactly the same amount as the total of the corresponding deposit in Jewel. If it is not, it will need to be edited, if in the current month, or adjusted, if in a previous month.

• Continue on through all the deposits. Find it on the statement first, then look for it in Jewel.

• If it is in Jewel but not on the statement, ignore it.

• If it is on the statement but NOT in Jewel, circle it on the statement so you can come back to it later.

Mark Off the Checks

Find the checks/withdrawals on the bank statement. Some banks list them separately from deposits, some do not.

• Pick the first check/withdrawal on the statement and then look on the Jewel screen to see if it is there.

• If it is in Jewel, put a checkmark in the box next to it and also put a mark next to that check on the statement so you know it is cleared. (“Show More Checks” is useful if the list of checks is lengthy.)

• Verify the check number as well as the amount. Don’t just check off a random check because the amount matches.

• If it is an electronic payment, match the statement date of the withdrawal, not just the amount. (This tutorial helps simplify electronic payments)

• Make sure the check amount that is on the statement is exactly the same as the amount of the corresponding check in Jewel. If it is not, it will need to be edited, if in the current month, or adjusted, if in a previous month.

• Continue on through all the checks/withdrawals. Find it on the statement, then look for it in Jewel.

• If it is in Jewel but not on the statement, ignore it.

• If it is on the statement but NOT in Jewel, circle it on the statement so you can come back to it later.

Electronic Payments

The easiest and most accurate way to [[enter electronic payments is to add them during the reconciliation, using the “Write Checks” button in the “Add Entry” box in the bottom right corner of the bank rec page. Click on the “Electronic Payment” box, found just below the signature line, when entering the payment.

Use the withdrawal date on the statement as the date of the electronic payment check in Jewel.

NOTE: All purchases and payments should be entered into Jewel as Checks, never as General Journal Entries.

Difference

After you have gone through all the deposits, checks and withdrawals, and if all of them from the statement are checked off in Jewel, the amount marked “Difference” in the Balances box above the photo should be “$0.00”.

If it says $0.00, celebrate by clicking on the green OK checkmark in the top right corner. When the message pops up asking if you want to print, click “YES” and then staple the printed reconciliation report to the bank statement that you just reconciled. Drop it in your “Bank Statements” file folder and you are DONE! Yay!

If the difference is not zero, check to see if you circled any items that were on the statement but were not in Jewel, and enter them into Jewel.

If the difference is still not zero, follow these steps to find and fix the problem.

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Return to Chapter 4: Bank Reconciliation