Bank Reconciliation in Sage 50: A Guide to Reconcile Sage Bank Account

Before starting bank reconciliation in Sage 50, users must ensure all financial transactions for the reconciliation period are entered. With online banking, it’s easier to reconcile your bank account regularly. If you encounter a Sage 50 Bank Reconciliation Discrepancy, refer to this help topic for step-by-step instructions.

Users can reconcile accounts for the current fiscal year without issues using the reconciliation setup. To reconcile older transactions not in the current fiscal year, perform manual reconciliation up to the end of the previous fiscal year, then return to the Sage 50 bank reconciliation setup.

Why is it important that your bank reconcile Sage 50 accounts?

Bank reconciliation is important because it helps you spot transaction errors and ensures your bank balance matches your account balance. It also helps identify fraudulent transactions and highlights delays in bank settlement or check clearance.

Why Reconcile your bank account in Sage 50

Bank Reconciliation is the process of comparing the transactions in your Sage accounting software to the transactions in your bank statement. This ensures that:

• All transactions have been entered correctly in Sage.
• The bank balance in Sage matches the balance in your bank statement.
• Your financial reports are accurate.

You can reconcile a current or credit card account in Sage. However, you cannot reconcile a cash account.

To reconcile an account in Sage:

• Open the Banking menu and select Reconcile.
• Enter the statement date from your bank statement.
• Sage will list all transactions that have been entered in Sage up to the statement date.
• Compare each transaction in Sage to the corresponding transaction on your bank statement.
• If the transactions match, select the Reconcile checkbox next to the transaction.
• If a transaction does not match, investigate the discrepancy and correct Sage or your bank statement.
• Once all transactions have been reconciled, click Reconcile.

If the difference between the balance in Sage and the balance on your bank statement is zero, then your reconciliation is complete. However, if there is a difference, you will need to investigate the discrepancy and make a correction in Sage or on your bank statement.

Note: Reconciliation is an important process that helps to ensure the accuracy of your financial records. It is recommended that you reconcile your accounts on a regular basis, such as once a month.

How To Reconcile Sage 50 Bank Account

There are four main steps that you need to take to reconcile the Sage 50 Bank Account.

Step 1: Enter your statement summary

1. Click “Bank Accounts” and select the relevant bank account.
2. Click “Reconcile.”
3. Enter the Ending Balance from your statement.
4. Enter the Statement Date (the end date of your statement).
5. Enter any Interest Earned and its Date.
6. Enter any Account Charges and their Date.
7. Click “OK.”

If needed, you can edit the statement summary by clicking “Edit” or the pencil icon in the Reconcile window.

Step 2: Verify the last reconciled balance

1. In the Matched transactions pane, check the Last reconciled balance.
2. Does the Last reconciled balance match the opening balance on the bank statement you are reconciling?
3. Yes, it matches – proceed to match your transactions.
4. No, it does not match – find the reason for the difference.

Step 3: Match your transactions

In the Un-matched transactions pane:

• Select the first transaction from your bank statement.
• Click Match >> The transaction moves to the Matched transactions pane.
• Repeat steps 1 and 2 until all transactions match your bank statement. If a transaction is missing in Sage 50 Accounts but appears on your bank statement, post an adjustment.

You can save the reconciliation at any time and finish it later by clicking Save Progress. To open a saved reconciliation, click Use Saved.

Before completing the reconciliation, click Report to view a list of unmatched items.

Step 4: Reconcile your bank statement

• Check if the Matched Balance and the Statement Balance are the same.
• The Difference should be zero. If the difference:
  • Is zero: Click Reconcile. A progress bar will appear while the software flags your transactions and creates a PDF of your reconciled statement.
  • Is not zero: Investigate the cause. If needed, click Save Progress. To open the saved reconciliation next time, click Use Saved.

Step 5: View reconciled report (optional)

• Click Bank Accounts, then select the relevant bank account.
• Click Reconcile, then click OK.
• Click View History.
  • A PDF will appear for each reconciliation, with the file name showing the bank account and reconciliation date.
• Double-click the desired PDF file.

How to Reset the Bank Reconciliation in Sage 50?

Bank reconciliation in Sage 50 is important to ensure that your actual bank balance and your Sage 50 bank balance match. But sometimes, users may need to reset bank reconciliation due to many causes listed in the below paragraphs.

There can be many reasons behind resetting bank reconciliation in Sage. Some of them are as follows:

1. Last month’s account reconciliation has already been posted, and now a different amount has been set.
2. Even if the closing balance is equal to the open balance and nothing is cleared, there is an amount that has not been settled.
3. Sage 50—Canadian Version Reading incorrect data because there is some incorrect data in the Bank Reconciliation database.
4. Sage 50 cannot reverse bank reconciliations for a given month.

Steps for Resetting the Bank Reconciliation in Sage 50?

In this blog post, we will show you how to reset the bank reconciliation in Sage 50. This is a very important process for financial advisors who use Sage 50 to manage their clients’ finances.

Know in this exclusive blog post the complete procedure to reset Bank Reconciliation in Sage 50.

Method 1: Create a Backup File

Back up your data because if you do not do this the previously completed Bank Reconciliation information will be lost permanently.

Open your data file to backup:

1. Ensure you are logged into the company you want to backup
2. If you are using Sage 50 Premium or Quantum, ensure you are in Single-User Mode in Administration
3. Proceed to the File >>> Backup
4. You can also utilize the toolbar at the top of the Home screen to choose the Backup icon. (it looks like a file cabinet)
5. Write the file name in the Sage 50 Backup window
6. It might be a good idea to include the date in this name
7. Select the folder where you want to save your backup
8. Please do not put the file location in the SAJ folder, as this is where the software backs up the files.
9. The latest backup file path is recognized and used as the default for the next backups.
10. If you’re not sure whether you want to overwrite an existing backup, don’t do it.
11. In the end, click “OK” to start the backup.

Method 2: Receive a list of outstanding transactions

1. First, choose report >>> Banking >>> Account Reconciliation Report
2. Use the next report type: Summary information with unique transaction details
3. Select the appropriate bank account, and then choose a suitable beginning date and end date
4. To show the latest successfully reconciled term
5. Choose the Option Statement as per the Report end date
6. To view the report, click “OK”
7. In the end, keep this report by choosing “Print” or “Open in Excel.”

Method 3: Clear the bank reconciliation

1. Double-click on the chart of Accounts first (if it is in Enhanced View, then from the left pane go to the Chart of Accounts Company tab)
2. Then double-click on the bank account
3. Select the tab Reconciliation and Deposit
4. Unmark the box next to Save transactions for account Reconciliation
5. Close the account just by clicking on the Save and Close
6. Finally, press “OK” to delete all reconciliation reports.

Method 4: Re-enable bank account for bank reconciliation

1. First, double-click on the bank account
2. Next, choose the “Reconciliation and Deposit” tab
3. Place a checkmark in the box next to “Save transactions for account resolution.”
4. Click on the “Set Up” button that appears at the bottom of the page
5. After setting up revenue accounts for interest income, error gain, exchange profit, and adjustment
6. You can also make expense accounts for bank charges, insufficient funds fees, and interest rates.
7. Close the account by clicking the “Save & Close” tab
8. Finally, close the Accounts window with the X in the corner.

Method 5: Set up the bank reconciliation once again with Sage 50

1. Firstly, open the Reconciliation and Deposit journal and then choose the appropriate bank account
2. Next, re-enter the Reconciliation Date, Statement Start Date, Statement End Date, Statement Opening Balance, and Statement End Balance for the month you were trying to reconcile.
3. Now, click on “Add past balance” to state the opening balance: Transactions outstanding on the start date of your statement using the export/printed report in step 2 (only after the statement start date) between the transactions, Manually roll backdated) and the Expiry date of details will be automatically imported by Sage 50)
4. After that, set the date within “Show Solved Transactions” and then “On or After”, where the balance is the oldest before the transaction.
5. Choose “Outstanding Transactions” from the list of resolved transactions
6. To go to the “Outstanding Transactions” list, you need to click “Add”
7. If a transaction that was outstanding as of the Detail Start Date does not appear in the “Resolved Transactions” list even after the search date has been modified.
8. You can tap on the Insert Outstanding tab and then add it manually
9. Once you have added all the outstanding transactions, tap on “OK” (Leave the outstanding transactions list blank and tap OK if you have no outstanding transactions to fetch)
10. Lastly, try reconciling your bank account once again.

In the End!

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