Reconcile Your Bank Account

You use the reconciliation feature to balance your books with your bank account.

CosmoLex recommends you reconcile your accounts monthly to catch bank or book errors in a timely manner.

This includes your:

  • Operating account
  • Trust account
  • Credit card account

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Bank Reconciliation

Step 1: Create a Reconciliation Statement

To create your reconciliation statement:

  1. Confirm you have printed your checks for the account. 
  2. From the left navigation panel, click Accounting.
  3. From atop the Accounting left navigation, click Bank.
  4. On the Bank Screen, either double-click the bank, or single-click it to highlight it, and then from the toolbar, click Details.
  5. From the bottom of the Bank Details left navigation, click Reconciliation.
  6. From the toolbar atop the Bank Reconciliation screen, click Add.
  7. On the Add New Bank Statement screen, from the Bank Statement End Date field’s drop-down, click your statement’s end date.
  8. In the Bank Ending Balance field, enter your statement’s bank ending balance.

    Important

    If you are reconciling a credit card account, enter the bank ending balance as a negative. For example, enter a credit card statement ending balance of $1,000 as -1,000.

  9. (For transactions you import via your bank’s QBO file or bank feed only) Check the Mark bank imported transaction as Clear as well as preserve clear status of excel imported transactions if any checkbox to automatically reconcile transactions with a Matched status and clear them from the applicable reconciliation statement, if desired.

    Important

    If you import your transactions via your bank’s QBO file or a bank feed, the Status field displays Matched beside those matching an existing CosmoLex transaction. This reduces the number of items to manually clear and speeds the reconciliation process.

  10. Click Save.

Step 2: Match Book Transactions to Your Bank Statement

To match your book transactions to your bank statement:

  1. Either double-click your reconciliation statement, or single-click it to highlight it, and then from the toolbar, click Details.
    The Reconciliation Details screen opens, displaying a toolbar atop the screen.
    Important

    As a default, the screen displays Uncleared Deposits and Uncleared Payments. To view all deposits and payments for the period, remove the applied filters.

    Additional Uncleared Deposits, and Voided Transactions are read-only tabs.

    Additional Uncleared Deposits are uncleared deposits dated this month, which appear on deposit slips dated in a future month.

    Voided Transactions are voided transactions being cleared in this month or future months. Transactions voided in this statement period will be cleared automatically once this statement is reconciled.

  2. Check the boxes to the left of all deposits matching items from your bank statement. If your bank batches checks or credit card payments received from clients, you may need to create a deposit slip.
  3. Click Clear Selected.
    The system marks your checked deposits as cleared and updates the cleared deposits Amount on the left of the screen. 

    reconciliation-screen-clear-selected

  4. If you want to save your selections without reconciling, click the gray Reconciliation left arrow. 
     

    reconciliation-screen-save-progress

  1. Click the checkbox to the left of all payments matching transactions from your bank statement.
  2. Click Clear Selected.
    The system marks the checked payments as cleared and updates the cleared payments amount on the left of the screen.
  3. Take the appropriate action:
    • Difference Does Not Equal $0
      1. Review your cleared deposits and payments for items cleared in error, items not cleared in error, or items cleared despite entry errors.
      2. Make corrections as needed.
    • Difference Equals $0
      1. From the Bank tab, check the boxes beside the non-matching items.
      2. From the toolbar, click Delete.
        The system removes them from the import list.
      3. Toward the upper left of the screen, click Reconcile.
        The system reconciles your statement. 

Automated Clearing Feature

CosmoLex can automatically match your book transactions to your bank’s downloaded QBO statement and identify items ready to be cleared.

To automatically clear your matched items:

  1. From the left navigation panel, click Accounting.
  2. From atop the Accounting left navigation, click Bank.
  3. On the Bank Screen, either double-click the statement, or single-click it to highlight it, and then from the toolbar, click Details.
  4. Toward the upper left of the Bank Details screen, click the orange Import Transactions down arrow.
    The Import bank statement .qbo file browser box opens.

    import-transactions-reconciliation

  5. Click Choose File.
  6. Locate your export file on your system.
  7. Either double-click the file, or single-click it to highlight it, and then click Open.
  8. The file name populates the browser box field.
  9. Click Upload.
    The statement uploads, displaying your transactions in a new Bank tab beneath the Book tab.

Book
  • Displays transactions already entered in CosmoLex
Bank
  • Displays transactions from your bank statement
  • Displays a checkmark in the Cleared column for those items matching a transaction you entered
    • Deposits require identical dates and amounts
    • Payments require identical check numbers and amounts
  • The Bank tab is only for your reference. You must choose which transactions to import.
  1. Clear matched transactions as appropriate:
    • Click Clear All
      1. In the upper left corner of the screen, click the orange Clear All.
      2. The clear all deposits message box reads: This action will mark ALL deposit transactions of the current reconciliation period as “Cleared.” This action cannot be cancelled. Continue?
        The system clears the matched transactions.
    • Click Clear Selected
      1. Check the boxes beside items you want to clear.
      2. Click Clear Selected.
        The system clears the selections transactions.
    • Click Items With Checkmarks in the Cleared Column
      1. Click items with checkmarks in the Cleared column.
        The system clears the items. 

View a Matched Transaction’s Details

To view a matched transaction’s details:

  1. To the right of a transaction, click Details.
    The Match Details screen opens, displaying the bank transaction to which the book transaction is linked.
  2. If you think a bank transaction is incorrectly matched to a book transaction, un-check the bank transaction.
    The transaction will remain uncleared.

Reconciliation Reports

To confirm your account reconciliations, see:

Updated on March 21, 2022

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