How to run bank reconciliation in Shireburn Financial Manager (SFM)

Reconciling your bank accounts is an essential practice for running a business, as it helps you validate data entry and monitor cash flow.

Reconciling your bank accounts is an essential practice for running a business as it helps you validate data entry monitor cash flow and more in this video i want to show you how to perform bank reconciliation in sfm in just a few steps to perform a bank reconciliation in sfm we highly recommend for you to have the actual bank statement in your hand just like this

One it can be easy to skip entries or to tag the wrong ones without it to minimize mistakes and to avoid a situation where the difference does not balance to zero we are going to simultaneously mark off entries on the statement and in your sfm system if you have your bank statement in hand let’s get started to begin click on the bank reconciliation button in the

Menu can then choose the bank account which we want to reconcile hit the tab key on your keyboard to move to the next field where we can choose the date of the bank statement hit the tab key once more and then enter the amount that is listed on the bank statement note that if you have an overdrawn balance in hand you can enter a negative amount here just add a

Minus sign before the amount finally hit tab again or enter and sfm will pull up all entries in your system that have yet to be reconciled for the chosen bank account before we begin tagging entries it is helpful to know that if you start tagging and then exit out of the system before finishing sfm will hold your place and you can continue where you left off the

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Next time you log in to start we can cross-examine values written on the bank statement with data in your sfm system to ensure that we are starting on the right foot in this process first let’s verify that the previous balance on your bank statement matches the statement running balance in sfm when we are finished reconciling this bank statement we should see

That the closing balance on the statement matches the statement running balance in sfm now we are ready to tag entries for reconciliation before this process we highly recommend for you to process this bank reconciliation in the same order as the entries on your bank statements to help us with this we can order our unreconciled entries by date external reference

Analysis or other fields by clicking on the appropriate column headers the reason for this is to help us better tally the running balance in our system in the end we should see that our running balance matches our statement we can reduce reconciliation issues through this practice all right let’s get going take note of the first entry on your bank statement

Then using the arrow keys on your keyboard scroll down to that same entry in sfm when you’ve arrived to the entry tap the space bar to tag it after each and every tagging check that the running balance in sfm matches the balance values on your bank statement remember that you can review the details of the entry by first selecting it and then typing control d

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On your keyboard this is helpful to ensure that the entries match between sfm and the statement once we have done that cross off the entry in your bank statement and move on to the next entry do this until all entries from the bank statements are tagged in sfm while tagging you may encounter a transaction on your bank statement that is not posted as an entry in

Your sfm system if this happens you can post this missing transaction from the bank reconciliation window once we save and post the entry it is tagged automatically after checking that the running balances match we can continue in the end you should find that the difference is at zero again we should see that the closing balance is the same as the statement

Running balance now we can print a reconciliation statement to do this click print and then reconciliation statement within the statement we can see once more that the balances match finally we can now archive the statement sfm will archive the statement and remove the tag entries your archive bank statements are found in archive nominal bank reconciliation

So this has been the bank reconciliation process in sfm we hope that this video tutorial was helpful for you remember you can always check out our faqs and help articles if you need further assistance with this or other tasks in your shy burn financial manager thanks for watching and we will see you in another video

Transcribed from video
How to run bank reconciliation in Shireburn Financial Manager (SFM) By Shireburn Software Ltd

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