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Um, so then after that, um, you’re going to have the date of your statement and you’re going to have the ending balance of that statement. So those are the, um, the three main things that go into the bank reconciliation. And then you need of course, your transactions from that period that you’re, you’re reconciling. Um, what does your reconciliation report show you? Yeah. So the reconciliation report, once you’ve finished reconciling, um, it should show you the beginning balance. Then it shows you what transactions have been cleared. So it’s going to show you the transactions that you’ve paid out of your rank as well as any deposits that have come in. Um, so it’ll show you all of those that have actually cleared the bank. And then it’s also gonna show you your ending balance and then it’s going to show you if there’s any outstanding or uncleared, uh, transactions with Edmonton Bookkeeping

And it’s also going to show you a registered balance. Um, how long should at clear transaction show on your reconciliation report? So little bit different between, um, bank statements and credit card statements. With a credit card statement, it shouldn’t show more than a couple of days. Um, if, if it’s showing up, if you’re unclear, transactions are showing up each month that you reconcile, then there’s probably something wrong. Um, because Bay a credit card, usually it only takes a day or two for it to clear the bank. Um, with a big statement, same thing. Anything that, um, comes in any deposits, it shouldn’t take more than a couple of days for it to show up in your bank. Um, any, um, transactions that are going out of your bank, if they’re a direct debit or you did it, um, like a POS purchase or something. Again, they should just be a couple of days, sometimes a check with Edmonton Bookkeeping.

Um, you’ve written somebody a check and they just haven’t deposited it yet. Those can stay on your account for a little while as uncleared DePaul or, uh, transactions. Um, I think it’s six months, right when it goes stale, dated six months. Yeah, it’s about six months now. Right? So if it’s getting close to that six month Mark, you should probably contact that person and just see if they’ve, uh, maybe they’ve lost the check or they just forgot that they had it, whatever it is. Um, I think we find too, that a lot of times if there’s uncleared transactions, transactions that are just not getting deposited or, um, coming out of your bank, chances are it’s a duplicate and you just need to go back and find out where that is and just delete that. Or, um, sometimes it’s a date is wrong, whatever you need for Edmonton Bookkeeping. So really important when you do your trend, uh, your reconciliation to go and check those under uncleared balances and just find out what exactly they are and, Oh, sorry.

Uh, so, uh, especially with credit card statements, there shouldn’t be a lot of uncleared transactions in your credit card statements just cause, um, the only thing that should, uh, hang out in your uncleared transactions is, um, the transactions that are waiting to clear because they just haven’t been shown in your bank account, but you actually entered it at the correct date. So there shouldn’t be anything that should hang out in your unclear transactions in your credit card statements, um, as opposed to bank statements where you’ve issued checks. Um, yeah, so you always have to look at the reasonability of the, um, transactions in the uncleared transactions, um, section of your bank reconciliation because, um, most of the time the things that are in there are made from error and not necessarily transactions that you’re leading to clear. Yeah, exactly. Um, so what do I do with these uncleared transactions with Edmonton Bookkeeping?

Yeah. And I think we kind of talked about that a little bit, so we just kind of have to go and look at them and see are they like, are they actual transactions that we’re waiting for them to clear the bank? Again, maybe the date that you’re doing the reconciliation, it’s just missed the cutoff. Like the, the transaction you know, is going to happen at the next time you reconcile those can just stay there. It’s right. Those transactions that have been uncleared for month after month after month that you have to go in and check and see like, is this a legitimate transaction? Did they make a duplicate transaction or somebody not deposited a check that I’ve given to them. Yeah. Yeah. Um, how can I know that my bank reconciliation is correct? Yeah. So once you’ve done your bank reconciliation, you’re gonna look at your reconciliation report with Edmonton Bookkeeping.

Um, you’re going to see the ending balance. So you want that ending balance to match what’s on your statement. Um, so once that is correct, then the other thing you want to look at is your registered balance. Your registered balance should match the GL for your bank in your balance sheet. So if those two registered or those two things match, then you know that you’ve done your reconciliation correctly. Um, we also recommend when you’re going to start reconciling another account or I mean another month on that same account that you’d go back and check that your last reconciliation is still correct. Cause sometimes during the month or whenever somebody may have made a change to that. And so then your, your, um, registered balance might be out. So then you just have to go and re reconcile that that month to make sure that your your right cause you, I mean it’s much easier to do it for one month than to do it for six months and 12 months.

I hear. And yeah. And most of the, uh, most of the softwares are smart now that they get, they’ll be able to tell you what wasn’t just they or what, what, what, what, uh, what’s the change that caused the, um, the back to being reconciled or de the beginning balance to be, um, wrong. Right. That’s right. So, um, yeah, so if you’re using something like, ah, then it would have been easier. But for some of us who doesn’t know, um, a software that is not able to do that, it’s a little bit more challenging with Edmonton Bookkeeping. Right. And you might have to go a couple of [inaudible] a couple months are even further to find out what the error was. Yeah, exactly. Great. So I think that’s all the questions we have. Right. Great. Yeah. Um, I’ll see you guys next time. I’ll please hit like, and subscribe and up. Please feel free to, uh, give us some questions. Um, if you have any, and we’ll see you on our next episode.