How to Process Monthly Account Reconciliation in Sage 50
Reconciling accounts each month in Sage 50 is essential for maintaining accurate financial records, detecting errors, and preventing fraud. This process compares your Sage 50 transactions with your bank or credit card statement to ensure everything aligns.
Step-by-Step: Reconciling an Account
1. Open the Account Reconciliation Window
- Go to Tasks > Account Reconciliation.
- Select the account to reconcile (typically a bank, credit card, or cash account).
2. Enter Statement Details
- Input the Statement Date and Ending Balance from your bank statement.
- Optionally, enter Interest Earned and Service Charges, along with the appropriate GL accounts and dates.
3. Clear Transactions
- Sage 50 displays all transactions for the selected account.
- Check off each transaction that appears on your bank statement.
- As you clear items, the Unreconciled Difference at the bottom should approach zero.
4. Add Missing Transactions (if needed)
- Use the Add New button to enter:
- General Journal Entries
- Receipts
- Checks
- This ensures your Sage 50 records match the bank statement exactly.
5. Use Autoclear (Optional)
- If you’ve imported bank feeds, Sage 50 may automatically match and clear transactions.
- You can manually match any that remain unmatched.
6. Finalize the Reconciliation
- Once the Unreconciled Difference is $0.00, click OK to complete the reconciliation.
- Sage 50 will mark all cleared transactions and generate a reconciliation report.
Tips for Monthly Reconciliation
- Reconcile as soon as you receive your statement to catch issues early.
- Use the Reports button to view or print reconciliation summaries.
- If reconciling a credit card, enter the ending balance as a negative number.
What Happens Behind the Scenes
- Cleared transactions are flagged and removed from future reconciliation windows.
- Adjustments (like interest or fees) are posted to the GL using the accounts you specify.
- You maintain a full audit trail of all reconciled activity.
Monthly reconciliation in Sage 50 is more than a routine task—it’s a vital part of your financial hygiene. Done consistently, it ensures your records are trustworthy and your reporting is rock-solid.