The end of month reconciliation is designed to make sure that all three tools you use to track your business are in agreement.
Bank that holds your money
Accounting that tracks Profit and Loss, typically Quick books
TAC On Line that handles your business activity
Customer records management, Invoicing and Receivables
Work scheduling, Productivity tracking
Sales reporting, Inventory management, etc.
To make sure all three have the same numbers, we do the following at the end of each month.
Reconcile Bank statement to Quickbooks - makes sure all monies spent and receivables are recorded in Quick books correctly. Remember to post deposits against your receivables chart of account
Record in Quickbooks the sales for the month - Create a single invoice for the month with the line items totals equal to the sales for the month as TAC reported. Enter one line item for taxable and one for non-taxable sales. See topic Recording sales at end of month
Post deposits\credits against Open end of month invoices - This reduces the open balances, monies your customers owe you. Run reports in Quick-books for your customers being used to track A/R
Reports\Customer and Receivables\A/R Aging Summary
Compare Quick books A/R aging report to to TAC report
Reports\invoices, statements, etc\Aging Report Tab\ 20 - Calculated snapshot
they should match.
Warning Warning Warning
If you are doing month end reconciliation to align all information tools you must close out a month and not make any transactions dated before the current, e.g. delete and invoice. You must adjust and invoice out. We strongly recommend you implement the following:
Limit the ability to delete financial transactions to 2 people with the company. Any deletion need to be done by these two people to eliminate deletions outside of the current period and avoid unintentional errors, e.g. deleting the wrong invoice.
- Activate posting date control in \ Admin \ System Setting \ Invoice - Lower left corner Permitted Date Range Posting Financial Codes to current month
Setting user permission are done at - \ Admin \ system setting \ User Permissions
The general guide line is that users without deletion option should have permission set:
1. no administrative access
2. Read/write in all categories. No full access
For the two people with deletion capability there permission should be:
1. Full administrative access
2. Full access to all categories
Setting period that deletions are allowed
You can set the starting and stopping dates that allow deletion. The location is
\ Admin \ System setting \ Invoice - In lower left hand corner is the setting for "Permitted date range when posting Financials".