Account Reconciliations [In-depth Guide]
Workamajig allows you to reconcile a selected G/L account against your monthly statement. You are able to reconcile any general ledger account in Workamajig. Typically, you would reconcile bank accounts, cash accounts (such as petty cash), and credit card accounts. You should systematically reconcile accounts each period, so you can quickly detect bank errors, match real-world data with Workamajig data, and identify possible mysterious activity.
The reconciling run is saved for each account reconciled. This allows you to print previous reconciliations prior to starting a new one.
The account reconciliation process does not affect any GL account. It is strictly a checksum of balances against your actual cash account or credit card statements.
NOTE: The beginning balance is based upon transactions that are posted to the specific gl account plus any opening balance and other increases/decreases entered in a previous reconciliation.
Account Reconciliation Listing screen | Add a New Bank Reconciliation | Resources
Account Reconciliations Listing
The account reconciliation listing screen provides a summary-level view of all account reconciliations. You are able to modify the listing to display the information that is pertinent to your team. You may also view the data in PDF or export it via CSV and Excel file formats.
Add a New Reconciliation
Please refer to the Go Live For Accounting guide for steps on creating an Opening Reconciliation.
- From Menu > Accounting > Today-Accounting
- Click the
button at top of the screen > Account Reconciliation to start a new reconciliation.
- Account, select the correct GL account.
- Beginning Date, select the beginning date from your statement.
- Statement Date, select the ending date from your statement.
- Starting Balance, confirm the value is the same as previous periods' Bank Balance field.
NOTE: This number is calculated using the following: All Cleared credits/debits that have targeted the GL account, including journal entries, payments, and receipts, since the beginning of time plus any other increases/decreases that have been entered on prior reconciliations, plus Remaining Opening Transaction balance>>
Cleared Transactions - Other Decreases + Other Increases + Opening Uncleared - Opening Cleared
WARNING: If the Starting Balance does not match the previous reconciles Bank Balance>>STOP>>review section Beginning Balance Differences, below, or contact Workamajig Support to look into the discrepancy. Changing the amount is allowed, but may cause future issues. - Statement Balance, enter the ending balance from your statement.
- Click SAVE and the system will then redirect to the reconciliation screen.
- select the appropriate increases and decreases that are accounted for on your statement
NOTE: Increases: Receipts are grouped together as a Deposit based upon the "shared" Deposit ID entered on the receipt. Click on the entry to see individual receipts.
Decreases: ACH Payments are grouped together using a "shared" BatchID created at the time the ACH payments are created. Click on the entry to see individual payments.
- Confirm the Statement Difference equals $0.00
The Rec Balances area will display the Beginning Balance + (Selected Increases - Selected Decreases) = Statement Balance. - Confirm Book Balances section: Book Balance and Ledger Balance MUST match (see Book Balance description below)
- Click Finalize at top of the screen.
The account reconciliation is now complete.
NOTE: Once transactions are "Cleared" via Account Reconciliation, they will be locked from further editing. If an adjustment is needed to a transaction(s), Open the reconcile that contains the transaction and click ...more>OPEN RECONCILIATION. Prior to re-Finalizing the reconciliation, confirm that Rec Balances are correct.
Book Balance
This section of the reconciliation shows the Book Balance vs the Ledger Balance.
Prior to finalizing the reconciliation, these two numbers should match.
Beginning Balance displays the amount from the Beginning Balance field. This should be the same as the Ending Balance from the previous statement.
Cleared Transactions is the total of all selected Increases and Decreases.
Bank Balance is the total of the Beginning Balance and the total of all Cleared Transactions (all increases + all decreases).
Uncleared Transactions are the total of all posted transactions that have not been cleared.
Remaining Opening Transactions is the remaining amount of Uncleared Opening Transactions (Uncleared Opening Amount - total of all Cleared Opening Amounts).
Book Balance is the Bank Balance amount + the Uncleared Transactions (all uncleared Increase transactions and uncleared Decrease transactions). This should match the Ledger Balance
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Ledger Balance is the Bank’s balance on the Balance Sheet. This should match the Book Balance
NOTE: If there is a difference between the Book vs Ledger balance and are unable to determine the cause, please contact your Workamajig Account Manager via Support@Workamajig.com.
Edit a Reconciliation
You may find it necessary to edit certain settings on a reconcile.
Open Reconcile by clicking the ...more>Open Reconciliation
Edit Rec Balances
Next to Rec Balances, click on the pencil icon
This allows you to change the following:
- Beginning Balance: not recommended
- Statement Balance
- Other Increases - used to track increases to the account that do not have a transaction associated with it
- Other Decreases - used to track a decrease to the account that does not have a transaction associated with it.
- Opening Transaction: default unchecked: used to designate a reconcile as an opening reconcile
- Cleared Opening Amount: used to account for transactions that were part of your Opening Balance Uncleared amount. Once this amount has been cleared fully, it does not get used again.
Edit Transaction Date Search
Located in the top right corner of the reconcile. The date can be changed to display transactions that may fall outside the initial as of date.
Following the date selection, click the Refresh icon to update the reconcile
Beginning Balance Differences
1. No Workamajig Opening Transaction/Opening Balance Reconcile
Going "Live" with Workamajig accounting requires a journal entry that will document the balances in your current system. As part of the go-live procedures, you need to create an Opening Balance Account Reconcile that was used to fund your GL accounts. It will also be used to track any payments that have not cleared within the timeframe of moving from your old system to Workamajig.
Resolution: Delete all current reconciliations for the account>create a new reconcile to clear only the Opening Journal Entry and enter the number of uncleared payments> Finalize > Begin reconciling each period in the normal fashion (earliest first).
2. Posted transaction into a previous period that was already reconciled
When posting a transaction to a previous period, this will cause the GL balance in that account to change. The Account reconcile Beginning Balance is set at the time of creation, so this new transaction may not be included in the open reconcile but will be included in the ending bank balance.
Resolution 1: delete the current reconcile and all reconcile to the month of the posting date of the transaction: select the transaction in that reconcile>Finalize> begin reconciling each period in normal fashion (earliest first)
or
Resolution 2: reconcile the transaction in the current period, adjusting the opening balance amount to reflect the transaction. Moving forward, the Opening Balance should reflect the correct balance.
3. Previous Reconciles have not been finalized
Each month as part of your financial closing, an account reconciliation should be completed and finalized. If the reconcile is left open, the balances and selected/unselected transactions may cause a problem with the current reconcile
Resolution: Finalize the reconciliation each month and close the financial period to prevent posting of transactions into a prior period.