Reconcile Accounts in Sage 50

Last updated: March 7th, 2024

Reconciling Accounts in Sage 50: A Step-by-Step Guide

Reconciling accounts in Sage 50 is an essential task that ensures the accuracy of your financial records. By comparing transactions in your Sage 50 company file with those on your account statements from financial institutions, you can detect and correct any discrepancies, such as bank errors, data entry errors, or even fraud.

Why Reconcile Accounts?

Reconciling accounts in Sage 50 is crucial for several reasons:

• Ensures the accuracy of your financial records
• Helps detect and correct errors or fraud
• Provides a clear picture of your company's financial health
• Prepares your accounts for tax purposes and financial reporting

How to Reconcile Accounts in Sage 50

To begin reconciling accounts in Sage 50, follow these steps:

1. From the Menu Bar, select Tasks > Account Reconciliation to open the "Account Reconciliation" window.
2. In the "Account to Reconcile" drop-down, select the account ID you want to reconcile.
3. Enter the statement date in the "Statement Date" field. You can reconcile information from prior accounting periods without leaving the current period by selecting the appropriate statement date.
4. Enter the account balance as of the statement date in the "Statement Ending Balance" field.

Filtering and Clearing Transactions

Sage 50 allows you to filter transactions to display only the ones you need to review. You can view deposits, bank credits, and all other transactions for the selected time period.

To clear transactions:

1. Check the checkbox to the left of each transaction to mark it as "cleared."
2. As you clear more transactions, the "Unreconciled Difference" will decrease.
3. To clear multiple transactions at once, click the "Multiple" button in the toolbar to open the "Clear Transactions" dialog box.
4. Select the transaction types to clear and specify a reference number or date range.
5. Click "OK" to clear the selected transactions.

Adding Bank Service Charges and Interest Earned

During the reconciliation process, you may need to add transactions not typically recorded in Sage 50 until you receive the bank statement, such as bank service charges or interest earned. To do this:

1. Click the "Expand" button in the lower-left corner to reveal the "Service Charges" and "Interest Income" sections.
2. Enter the appropriate transactions, including the date and associated account (e.g., bank service fees expense account or interest earned income account).

Connecting to Bank Feeds and Importing Statements

Sage 50 offers features to streamline the reconciliation process, such as connecting to bank feeds and importing bank statements.

To connect to your bank feed through Sage Bank Feeds:

1. Click the "Connect to Bank Feed" button in the toolbar.
2. Enter and confirm your email address.
3. Follow the steps in the "Sage Bank Feeds" wizard to authenticate yourself and grant access to your bank's online account feed.

To import a local copy of a bank statement:

1. Download a copy of your bank statement from your bank's website.
2. In the "Account Reconciliation" window, click the "Import" button to open the "Import Statement" window.
3. Click "Browse" to locate and select the saved statement file.
4. Click "Import" to import the statement.

Finalizing the Reconciliation

Once you have cleared all transactions and the "Unreconciled Difference" is zero, you can finalize the reconciliation by clicking "OK" in the window's toolbar. If you need to pause and resume the reconciliation later, you can do so at any time.

After a successful reconciliation, the cleared transactions will be removed from the list when you move to the next accounting period.

Frequently Asked Questions

How often should I reconcile accounts in Sage 50?

It is recommended to reconcile your accounts at least once a month, or whenever you receive a statement from your financial institution. Regular reconciliation helps maintain accurate financial records and allows you to detect and correct any issues promptly.

What if I encounter discrepancies during the reconciliation process?

If you find discrepancies during the reconciliation process, first double-check your entries in Sage 50 and the transactions on your account statement. If the discrepancy persists, contact your financial institution to resolve the issue. You may need to make adjusting entries in Sage 50 to correct any errors.

Can I reconcile accounts from previous periods?

Yes, Sage 50 allows you to reconcile accounts from previous periods without leaving the current period. Simply select the appropriate statement date for the prior period when setting up the reconciliation.

What reports can I generate after reconciling accounts?

Sage 50 offers various reconciliation reports that provide valuable insights into your financial data. Click the "Reports" button in the "Account Reconciliation" window to access these reports, which include the Reconciliation Summary, Reconciliation Detail, and Unreconciled Transactions reports.

Reconciling accounts in Sage 50 is a vital process that helps maintain the accuracy and integrity of your financial records. By following the steps outlined in this guide and utilizing the available features, such as bank feeds and statement imports, you can streamline the reconciliation process and ensure your accounts are always up to date.