How do you clear a bank reconciliation?
To clear a bank reconciliation, follow these steps:
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- Ensure all deposits, withdrawals, and fees match between the statement and your records.
- Mark each matched transaction as “cleared” in your software.
- Investigate any discrepancies and make necessary adjustments to your records or the bank statement.
- Once all transactions are reconciled and cleared, ensure the ending balances match.
- Generate a reconciliation report to document the process and outcomes.
- Archive supporting documents like bank statements and reconciliation reports.
- Regularly review and clear reconciliations to maintain accurate financial records. Remember, maintaining proper documentation is crucial for audit trails and financial transparency.
