With this update, you can now reconcile your 123Landlord accounting ledger against your actual bank statement. Transactions can be cleared or flagged, and you can run a reconciliation report to show discrepancies between your bookkeeping and your bank account.
Here's how to use this feature:
1. Click the Accounting button to open the income & expense ledgers.
2. Click the "Perform Bank Reconciliation" button
3. The Bank Reconciliation screen appears:
4. In order to perform bank reconciliations, you first need to add a Bank Statement. The bank statement entry just allows you to enter the statement date and the total amount of credits and debits/checks on the bank statement. You can get this information from your paper or electronic statement. 123Landlord will use this info to compare its entries against the totals in your bank account.
Click the "Add New Statement" button to add your first bank statement:
5. Enter the Statement Date and the total amount of deposits/credits, and withdrawals/debits/checks. Click Save.
6. You now have a bank statement - all bank reconciliation will be verified against the currently selected bank statement. We have just the one bank statement added, so it is already selected:
7. You can edit or delete the bank statement.
8. To begin the reconciliation process, click the "Start Reconciliation" button.
9. The accounting ledger expands each row to show reconciliation buttons:
10. Clicking this button will toggle the reconciliation state for that accounting entry between Pending, Cleared, and Uncleared:
You perform the bank reconciliation manually by verifying each entry in 123Landlord that has a corresponding entry in your paper (or electronic statement). There is no capability to import bank statement entries at this time.
The pending state (gray) is the default state - when you have not performed reconciliation on an entry and its state is still undecided.
Cleared implies that the accounting entry in 123Landlord matches an equivalent entry in your bank statement.
The Uncleared state means that the accounting entry is flagged for review.
As you go through each entry and either Clear it, or Flag/Unclear it, these states will be saved. You can always review these states by clicking the Start Reconciliation button.
When you are done, click the Finish Reconciliation button.
11. You can now run the Reconciliation Report - click the Run Report button to do so:
The bank reconciliation report will show the uncleared expenses and income and the discrepancies between the totals in your bank statement. It will also show details about all of the uncleared entries for your review.