Bank Account Reconciliation

Reconciling your bank account is the act of verifying the transactions within your Rentec Direct account to match those of your bank statement.  The reconciliation process will guide you through the 3 simple steps to ensuring that your online ledger in Rentec matches your bank statement to the penny.

  1. Start by entering the bank account ledger you wish to reconcile.  Do this by going to the Accounts tab, and clicking on the balance of the account to enter the ledger.  Now choose the Reconcile button at the top.
  2. Enter the statement date (as printed on your bank statement), the beginning balance and ending balance.  These values are important for calculating any difference between your statement and what is stored in your Rentec ledger.  Now click Begin.
  3. You are now within the Reconciliation screen.  On the left you are presented with all debits to the account and on the right you see all credits/deposits to the account as entered into Rentec.  In the lower-right you have the cleared balance (this starts at the value you entered for opening balance in step 2) and is adjusted as you check or un-check transactions.  The Statement Ending Balance is what you entered as the ending balance in step 2, and the difference value is the difference between these two balances.  The goal is to make the difference $0.00.
  4. QUICK METHOD: Click the Mark All button at the bottom of the screen.  This will select all credits and debits.  If the difference value in the lower-right is $0.00, it is a high likelihood that your bank statement and online ledger match perfectly.  You can click Finished to complete the reconciliation.  If the difference value does not equal $0.00, it means there is a discrepancy.  First look at the bottom of each list, and un-check any transactions that are within the Rentec ledger that happened after your bank statement was printed.  Those transactions will get reconciled on the next statement.  If the difference value now equals $0.00, click Finished.  If the difference value does not equal $0.00, switch to the long method described next.
  5. LONG METHOD: Review the debits on the left and credits on the right against your bank statement and mark the checkbox next to each matching item.  Once completed, if the difference value equals $0.00, you can click Finished.  If the difference value does not equal $0.00, make note of any transactions on your statement that are not within your Rentec ledger and click Finish Later.  Enter into the appropriate ledger any missing transactions (typically these are property related expenses which you'll want to post within the Properties tab, or tenant income which posts on the Tenants tab).  You can now return to the reconciliation and mark the checkboxes next to the missing transactions.  When done, click Finished.
  6. In the last step if the difference value equaled $0.00, this means your bank statement reconciled perfectly and the reconcile screen will close and mark all associated transactions with a R next to them in the bank account ledger.  If the difference value was not equal to $0.00, Rentec will automatically post an adjustment to the account for whatever the difference is.  If you prefer the adjustment not be posted to the ledger, simply delete it afterwards.
  7. That's it, you've used the built-in reconciliation features to verify your bank statement matched your Rentec ledger.  Congratulations!

Question: What if I have lots of past transactions and want to mark all past transactions as reconciled without reviewing every historical bank statement?

Answer: Just follow these steps.  1) Enter the account ledger, and click the Reconcile button.  2) Enter today's date, and put 0.00 for beginning and ending balance, click Begin.  3) Select Mark All on the next screen.  De-select any transactions you do not want to be included, then click Finished.  4) If an adjustment is automatically posted, you can optionally delete the adjustment value.

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Rentec also automatically archives every bank reconciliation report for you, so you can retrieve them if ever needed in the future.  To retrieve any past reconciliation reports, just right click on the account and choose Notes/History.  Click on any of the reconciliation items to download that specific report dated as if it was the day you entered it. 

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