Each month you will want to match your bank statement with your Rentvine account by performing a Bank Reconciliation. Any unexplained differences between the two records may be signs of non entry or financial misappropriation.
It is important to reconcile your bank accounts to ensure that your internal financial records match what’s happening in real life. This process helps you detect any anomalies, accounting mistakes, or inefficiencies within your business, ultimately resulting in more precise financial records.
By performing a three-way bank reconciliation as you navigate through the bank reconciliation process, Rentvine's reconciliation system aids in guaranteeing that the financial records entered in your Rentvine account correspond with your bank statements.
- From the left navigation menu, click on Banking under Accounting
- Click the Green Actions button and select Reconcile
- Once you are in the New Bank Reconciliation page, fill in the top of the page
- Bank Account - Choose the bank account you want to reconcile
- Statement Start Date - This will be pre-filled if you have a prior reconciliation on this bank account
- Statement End Date - This will be the end date from your bank statement
- Statement Ending Balance - Enter the statement ending balance amount from the bank statement
- Attach a File - Optionally upload a file that you want to attach to the reconciliation. You would typically upload that month's bank statement.
- Search Box - You can search for any items in the Money In and Money Out section by typing in a date, reference, description or amount
- From your bank statement, match the Money In (Deposits) and Money Out (Withdrawals) one by one and check the boxes on the left for the ones you want to clear as you go through the bank statement.
- As you clear the Money In and Money Out transactions you will notice that the values in one or more of the three reconciliation boxes (Ending Balance, Cleared Balance, Adjusted Cash Balance) will change as the items are cleared.
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If you wish to preserve your work, simply select the Save button to retain the progress of the cleared items. This feature proves beneficial if you reconcile on a daily or weekly basis and want to preserve your work until you receive your official bank statement. By saving, the next time you or anyone else visits this page, the checked-off items will remain intact.
- As you continue to clear items the three reconciliation boxes will turn green if the deposits and withdrawals from your bank statement match your Rentvine transactions. This means a three way reconciliation has been completed and you can click Reconcile to complete the reconciliation.
After you click Reconcile it will take you to the Reconciliation report page. Here you can click on the green Actions button and select print if you want to print it to a pdf.
Some TIPS as to why one or more of the balance do not match (NOT ALL GREEN)
****below are some examples of possible reasons why****
- ATM service charges or bank fees
- Bank Interest
- Check printing fees
- Funds were never deposited
- Bills were paid from a different bank account
You would want to go back and account for all of these transactions in Rentvine to clean up the accuracy of the Reconciliation.
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Adjusted Cash Balance is what Rentvine thinks you should have in your bank account
If the Adjusted Cash Balance is out of balance it could be caused by one or more of the following:
- The Majority of the time when the adjusted cash balance is out of balance, the issue typically arises from a discrepancy between the deposit date and the date of the itemized payment(s) linked to it. For instance, if you have a deposit recorded on the 30th or 31st of a month, but the itemized payment is dated the 1st of the following month, it is necessary to adjust the itemized payment date to either match the deposit post date or select a date prior to it to restore balance to the adjusted cash balance.
When creating a deposit in the system, it's important to ensure that the post date of the individual payment(s) linked to the deposit either matches the date of the deposit or precedes it.
- Similar to the deposits, settlements can cause an adjusted cash balance discrepancy and this arises from a discrepancy between the settlement date and the date of the itemized payment(s) linked to it. For instance, if you have a settlement recorded on the 30th or 31st of a month, but the itemized payment is dated the 1st of the following month, it is necessary to adjust the itemized payment date to either match the deposit post date or select a date prior to it to restore balance to the adjusted cash balance.
- When bills are paid with a credit, a payment batch will still be generated. The day that the bill is paid with the credit will be the Date Posted/Date Allocated for the credit on the payment. The payment batch will also have a Date Posted, and it defaults to today's date but can be changed. If the Date Posted of the payment batch is changed to be prior to the Date Posted/Date Allocated of the credit, this can cause the Adjusted Cash Balance to be out of balance.
- Make sure all your manually recorded lease payments, owner payments or other payments (All Money In type transactions) have been recorded as deposited. Ensure your deposit date is the same as the one shown in your bank deposit slip.
- There are bank adjustments entered that are dated before the “Statement End Date”. Bank adjustments will cause the adjusted cash balance to be out of balance. We recommend to not enter bank adjustments.
- There could be transactions that may not be dated correctly. For example you want to be sure that all transactions entered into Rentvine match what happened in real life. (I.e. deposits, payments, journal entries)
- There is a transaction(s) that should not be recorded in Rentvine or a transaction(s) that is missing from Rentvine regardless of the date posted.
When you set the statement end date on the reconciliation it changes what is the Total Cash Balance in that adjusted cash balance section. The total cash balance is basically the total of the bank balance breakdown of all ledgers in Rentvine as of the date entered in the “Statement End Date” field . See the screenshot below as an example.
Also, keep in mind that you can still reconcile as long as the first two boxes are green (Ending Balance and Cleared Balance).