We recommend users reconcile each of their bank accounts monthly to ensure that the data in Ambrook matches their statements. You can access the reconciliation screen from a few different places:
From the ledger, in the upper right corner by clicking Reconcile.
On the Reports tab, under Reconciliation.
On the Accounts tab, click on a specific account, then click Reconcile.
Account reconciliation is a bookkeeping process by which you compare the transactions in your ledger to an external source of truth to catch clerical errors and check for incorrect transactions. Regular reconciliation can help decrease your tax liability, ensure your reports and data are accurate, and minimize the time your accountant needs to spend correcting errors.
A bank reconciliation is the most common type of reconciliation, where you compare a statement provided by your bank to the same account in Ambrook over the same time period. Many bookkeepers and producers use reconciliation to ensure their books are accurate and that neither the bank, the connecting software, the accounting software or the users have made any errors.
This video walks through reconciling in Ambrook step-by-step. You can also read the steps and troubleshooting tips below.
1. Set Up for Success
Before you initiate a reconciliation session, make sure you have your bank or credit card statement in front of you, either online or printed. Next, go to the Accounts page and click on the account you're going to reconcile.
Scroll down to the Opening Balance and Starting Date. Make sure that the Opening Balance matches the balance on your bank account or credit card statement as of the Starting Date.
Note: If the opening balance is incorrect, the starting balance of all your reconciliation sessions will likely be incorrect as well.
2. Initiate a Reconciliation Session
Once you have your statement and confirm your starting balance, initiate a reconciliation session. To do this:
Go to the Ledger, Reports, or Accounts tab
Click Reconcile or Reconciliation depending on the tab
Click Reconcile (or Resume if you previously started a session)
Enter the date range and ending balance from the bank statement that you want to reconcile against in the pop-up screen
(Optional) You can also upload the statement itself here to reference it later!
Note: If your ending balance date is negative, remember to switch Asset (Debit) to Contra-Asset (Credit).
3. Reconcile your Account
Next, you will be brought to the Reconciliation screen where you will see all of the transactions from the Ledger during the statement time period you specified for your selected account.
We recommend starting by clicking the All button on the right above the transaction list. This will select all the transactions. If the transactions you have in your Ledger exactly match the transactions from your bank or credit card statement, the Difference amount at the top right should equal $0. If this is the case, you are done and can click Finish to save the session.
How do my outstanding and undeposited checks affect my reconciliation sessions?
When you start a reconciliation session, you’ll see any outstanding or undeposited checks dated during and before the statement start date listed at the bottom of the screen.
If one of these checks cleared during the statement period, you can clear it directly from the reconciliation screen by clicking Clear. This allows you to clear checks that were written earlier but posted during the current statement period. You can clear any checks that has cleared the bank during the statement period, and leave checks uncleared if they are still outstanding.
Outstanding and undeposited checks will not affect the reconciled balance or contribute to the difference value shown at the top of your screen until they are cleared.
What happens to unreconciled transactions from a previous reconciliation?
Any transactions left unreconciled in a prior reconciliation will carry over to your next session. You’ll also see them listed at the bottom of the screen and your starting balance will update to reflect those transactions once selected.
For example, if a transaction posted on February 29th but appears on your March bank statement, you can leave it unreconciled in February. It will then carry over and be available to reconcile in March.
4. What if there is a Discrepancy?
If you still have a difference after selecting all and confirming your account opening balance, there are several steps you can take to identify and correct any discrepancies between the transactions you have in Ambrook and your external source of truth. View common reconciliation troubleshooting steps here.
5. Saving and Deleting Reconciliation Sessions
If you don’t finish reconciling in a single sitting, just click the Save button to return to the ledger. Any transactions that you reconcile will remain checked so you can pick the work back up when you return. The next time you go to reconcile an account, we’ll tell you the last date it was reconciled up to.
Once you complete a reconciliation session—or select transactions within an active session—those transactions become locked. This means you won’t be able to edit details like the date, description, or amount (but you can still re-categorize them!).
If you need to edit any of these details, you’ll first need to delete the reconciliation session. To do this:
Go to the Ledger, Reports, or Accounts tab
Click Reconcile or Reconciliation depending on the tab
Click on the desired account
Click the three dots on the right
Click Remove
6. Viewing Reconciliation History & Reports
To view your past reconciliation sessions:
Go to the Ledger, Reports, or Accounts tab
Click Reconcile or Reconciliation depending on the tab
Click on the desired account
View you reconciliation history under Completed Sessions
Click Download to generate a reconciliation report
7. Why is my statement beginning balance different than my Ambrook beginning balance?
Ambrook calculates the account’s starting balance based on previous transactions in the account on the Ledger. This should match the starting balance on your bank statement, especially if you reconcile your accounts regularly.
If it does not match, it could be for two reasons:
Incorrect opening balance. From Settings > Accounts, find the account you're reconciling and click it to see the account details. Confirm that the opening date and opening balance are accurate.
A reconciliation error in the past. We suggest going backwards month-by-month until you find a month where the Beginning Balance does match and then reconciling each month going forward until you find the error.