A bank reconciliation statement is a document that compares the cash balance on a company’s balance sheet to the corresponding amount on its bank statement. Reconciling the two accounts helps identify whether accounting changes are needed. Bank reconciliations are completed at regular intervals to ensure that the company’s cash records are correct. They also help detect fraud and any cash manipulations.
How to do Bank Reconciliation?
In ProfitBooks, For Bank Reconciliation, Follow these steps:
Step 1: Go to Banking> Bank Reconciliation and click on Import New Statement
This screen lets you import the bank statements in ProfitBooks. Once its imported, you can reconcille the transactions to keep your books in order.
Step 2: After the screen gets Imported and If the transaction on statement matches with ProfitBooks transaction, click on reconcile.
Step 3: You can add income or expense transactions in ProfitBooks if required, by clicking on Find Match
And it's Done! Thats it! You can view the bank reconciliation reports from Reports screen.