Checkbook Reconciliation Troubleshooting

Product: The Agency Manager® Series 7 and above

After reconciling your checkbook, if you are not in balance with the bank statement, follow the steps below to determine what is generating the difference.

  1. If you are running the reconciliation worksheet with a filter date or a filter month, rerun the worksheet using No Filter. Check to see if the balance on bank statement from the worksheet is in balance with your statement. If it is, there is likely an item with a future date or month generating the difference on your reconciliation. Once you have found the discrepancy, rerun your reconciliation worksheet. If there is still a difference, continue with step 2.
    Note:
    While you are looking for the difference, Accounting Support recommends you continue to use no filter date until the difference is corrected. After the difference is corrected, you can go back to using the filter date or month.
  2. Look at the worksheet you ran before you started flagging your items. Does the Balance on Bank Statement match the opening balance on your current bank statement? If not, check your cash account’s running balance. Access  Accounting, Month-End, Month-End In-Balance Checks, Cash Journals. Do not change the accounting month that defaults as the last posted accounting month; simply click OK. A cash journal validation report prints. (For more information on the printout, please refer to Validate Cash Balances.) On the printout, next to the cash journal you are reconciling, is there a difference?  If so, perform the following steps:
    1. Run In-Balance Checks again, this time checking the box to Repair any incorrect balances found.
    2. Run In-Balance Checks a third time, not opting to repair balances.
    3. Go back into Checkbook Reconciliation and run the worksheet without a filter, and see if the reconciliation matches the bank statement. If there is still a difference, continue to step 3.
  3. Check the Balance on Bank Statement on the reconciliation worksheet. Does it match last month's reconciliation? If not, check for missing items. Was there an out-of-balance entry that was removed from TAM and never re-entered into the system?
  4. Review the outstanding items on the worksheet, comparing any older items to your worksheets from prior months.  Are there any old items on the worksheet that had previously been flagged?  If so, flag them.
  5. Rerun the reconciliation worksheet. If there is still a difference, continue with step 6.
  6. Look at your agency's bank statement. Have you recorded all of the service charges and the interest? If not, record the entries now, flag them, rerun the worksheets with No Filter selected, and see if the reconciliation balances. If there is still a difference, continue with step 7.
  7. Run a Balance Sheet (Reports, Reports-General Ledger, Balance Sheet) for the current accounting month. Does it balance?  Run a Status of Accounts (Reports, Reports-General Ledger, Status of Accounts) for the current month. Does the Account Balance figure on the Status of Accounts match the figure on the Balance Sheet for this account number?  Rerun the reconciliation worksheet. If there is still a difference, continue with step 8.
  8. Run a Status of Accounts for your cash account that is not balancing, running it separately for each of the three months leading up to the month in which the account does not balance.  (For the Accounts criterion, you can select just the account that is not balancing.)  For example, if the agency is out of balance in AUG12, you will run a Status of Accounts separately for AUG12, JUL12, JUN12, and MAY12. Look on the Status of Accounts for:

    Rerun the reconciliation worksheet. If there is still a difference, continue with step 9.

  9. Has your agency done any backposting against any cash accounts? Run a Schedules Report (Reports, Reports-General Ledger, General Ledger Schedules) for the Schedule ADJUST and see if there are any entries against your cash account.  If so, have those been flagged in checkbook reconciliations?  Rerun the reconciliation worksheet. If there is still a difference, continue with step 10.
  10. Run a Cash Journal Entry History Report (Reports, Reports-General Ledger, Cash Journal Entry History) from the month you went out of balance to 10 years in the future. Are there any checks or deposits pulling into the future? If there are, update these items to change the accounting month to the current accounting month. Rerun the reconciliation worksheet. If there is still a difference, continue with step 11.
  11. Perform manual auditing.
    1. Compare the Status of Accounts Report line for line to the bank statement for the past three months. Look for any entries on either report that differ. If there are differing entries, make the appropriate adjustments in TAM and then rerun the worksheets.
    2. Compare the Reconciliation Worksheet (showing all outstanding items and using no filter date) to the Status of Accounts Report. Are there any items on the worksheet that are not on the Status of Accounts Report? If there are differing entries, contact Accounting Support; as this would indicate that there is an issue with the date or accounting month of an entry.
    3. If you still cannot determine the source of the difference, manually work back to the balance. Find the last check number, last deposit number, and last miscellaneous disbursement number listed on last month's worksheet. Using the Status of Accounts report, can you come up with the bank balance using the same cutoff?  If they match, rerun your reconciliation worksheet. Does it match the new bank statement balance?
      • If it does, then throw away the preliminary worksheet. Retain the final worksheet.
      • If it does not match, manually go through to find the item flagged in error, or the item not flagged that should have been.
  12. If you are still having a problem and everything mentioned above has been tried, contact your accountant to help audit the account.

Important Note: Support fees do not include audit services. An agency or brokerage may request Applied Systems to audit a checkbook reconciliation. If the problem is found to be user error and not a problem in TAM, the agency/brokerage will be charged for the audit. Auditing for checkbook reconciliations is subject to Applied Systems staff availability.

Last Revised: March 13, 2013 15:23:15

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