M-Powered Bank Statements > Viewing and reconciling bank account information > Reconciliation—frequently asked questions
Reconciling bank account transactions in your company file against transactions presented on your bank statements ensures the integrity of your financial information and identifies discrepancies that may arise. Frequent reconciliations, such as weekly or monthly, ensure you have up-to-date knowledge of your financial position.
The Calculated Statement Balance field displays the balance of your bank account after cleared deposits and withdrawals have been taken into consideration. To reconcile your account in your company file, the Calculated Statement Balance must match the closing balance for the date you are reconciling on your bank statement, that is, the amount you have entered in the New Statement Balance field.
When you perform your bank reconciliation, the amount in the Calculated Statement Balance field should equal the statement balance entered in the New Statement Balance field. When these fields equal, your company file records match your bank statement and the Out of Balance amount is zero.
If your account is out of balance, a window will indicate the amount by which your account is out of balance and will give you an idea why the account is out of balance. In addition to these suggestions you can print your bank statement report (see Sample M-Powered Bank Statements reports) and manually verify the following:
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Are all the cheques and deposits that appear on your bank statement marked in the Reconcile Accounts window? Check to be sure the deposit and withdrawal amounts that appear on the Total Cleared line near the bottom of the Reconcile Accounts window are the same as the total deposit and withdrawal amounts on your bank statement.
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Did you enter the correct amount in the New Statement Balance field? (Be sure you entered the ending balance from your statement, not your beginning balance.)
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If the account you are reconciling is an overdrawn asset account, you must enter a negative amount in the New Statement Balance field.
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Are all deposits accounted for? If the bank statement shows a higher balance than the balance calculated, a previously cleared deposit may have been deleted and not re-entered, or re-entered but not marked as cleared.
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If you require more information on finding transactions that cause out-of-balance amounts, visit the support page on the MYOB website myob.com.au/supportnotes.
What if I incorrectly match a transaction in the Unmatched Statement Transactions window?
When you match a transaction in the Unmatched Statement Transactions window, the transaction is marked as cleared in the Reconcile Accounts window and the statement transaction is removed from the list of unmatched transactions. If you incorrectly match a transaction, you need to deselect this transaction in the Reconcile Accounts window and manually mark, as reconciled, the correct transaction.
What if I incorrectly add a transaction in the Unmatched Statement Transactions window?
When you add a transaction in the Unmatched Statement Transactions window, a new transaction is added to the journals of your company file and is marked as cleared in the Reconcile Accounts window. If this transaction already existed in your company file, choosing to add a transaction results in a duplicate transaction being recorded in your journal. You will need to either reverse or delete the duplicated transaction from your company file.
