Computerized Farm Record Keeping

Bulletin 890-01

Reconciling

Reconciliation guarantees that the amounts entered into your farm records correspond with the amounts entered into your checkbook. Each month you should reconcile your Quicken checking account with the bank statement. If you have more than one account, you should reconcile each, but you can do only one account at a time. Be sure to review your bank statement for any errors that may have occurred. To reconcile your account, follow the steps outlined below.

1. Open the account to be reconciled, e.g., the checking account.
2. Make sure all checks and deposits up through the date of the bank statement have been entered into the checking account register.
3. From the menu bar Click Banking, Click Reconcile or Click Reconcile on the toolbar in the REGISTER window of the account which you plan to reconcile. This will take you to the RECONCILE BANK STATEMENT: account name window.
4. Accept the Bank Statement Opening Balance. The first time you reconcile in Quicken, the opening balance should be the balance you entered when you set up the account originally. If not, go back to the Accounts chapter and review Setting Up Your First Checking Account.
5. Enter the Bank Statement Ending Balance.
6. Service charges and interest earned can be entered next, if desired, categories assigned and the actual date posted. An alternative is to enter them directly into the register. Be sure to enter them into your checkbook also.
7. Click OK to open the RECONCILE BANK STATEMENT: account window. The toolbar buttons in this window are:

   New - enter a missing transaction in the register

   Edit - change a transaction in the register

   Delete - delete a transaction in the register

   Statement - modify the financial information entered

   View - change how checks and deposits are ordered

   How Do I - help in the Reconcile window

   X - close the Reconcile window

8. The RECONCILE BANK STATEMENT: account window contains outstanding deposits and checks. The service charge, and interest earned just entered will show as cleared transactions with a check mark in the CLR column to the left of the item.
9. Mark each check and deposit that has cleared the bank, as indicated on your statement, by Clicking on the check or deposit. The space bar also acts as a toggle to clear or unclear transactions.
10. Quicken records a 'c' (R after the reconciliation process is finished) in the check register as you mark transactions as cleared. To view the register or to edit a transaction, Click Edit in the RECONCILE BANK STATEMENT:account window toolbar. Click Return to Reconcile to return to RECONCILE BANK STATEMENT:account window.
11. If the bank statement contains transactions not in the register, you can enter them into the register by Clicking New in the RECONCILE BANK STATEMENT:account window toolbar. Enter the transaction in the register. Click Enter to RECORD. Click Return to Reconcile. Also enter these into your checkbook.
12. When you are done marking cleared transactions, check the Difference: at the bottom right-hand corner of this window. If the Difference: between the Cleared Balance and the Statement Ending Balance is $0.00, the account is balanced. If differences remain, check dollar amount on each entry, the number and amount of debits and credits with bank statement.
13. If you are unable to reconcile the difference, see Quicken Help for finding and correcting a difference.
14. When the Difference: is 0.00, Click Finished and you will be congratulated. You will also be able to print a Reconciliation Report. Take advantage of this opportunity, Click Yes at least until you are easily able to reconcile your accounts.