How do I troubleshoot my Bank Reconciliation?
Bank Reconciliation allows you to account for all your funds by matching transactions from your bank statement to entries inside FreshBooks. If you haven’t set up Bank Reconciliation yet, you can get started with the steps here.
Accept Online Payments Deposits and Fees
If you use FreshBooks Payments (WePay) and/or Stripe, payments are deposited into your bank account in batches. These deposits, along with your transaction fees, add up together to represent the total paid on your Invoices.
Therefore, you can match each deposit Bank Transaction with the Invoice payments and transaction fee Expenses under FreshBooks Transactions together.
To find out which Invoice payments are in your deposit, use the below steps to download a report from your payment gateway:
- Log into your WePay account
- Click on Reporting
- Then select Settlements
- Choose the settlement you want the report for
- Click on theDownload CSV button, and you’ll receive an email within 5 minutes with a link to download the report.
- Log into your Stripe dashboard
- Click on Balance
- Then click on Transactions
- Next, click on Export in the top left corner
- Choose the date range as needed and click Export.
Loans and Lines of Credit Accounts
Currently Line of Credit and Loan bank accounts will not be displayed in Bank Reconciliation. If you have loans or line of credit transactions to match, you can mark those as Bank Transfers instead.
Then have your invited Accountant create a Journal Entry to record it in your books.
I put in the wrong opening balance, how do I fix this?
You can reset your opening balance with these steps:
- Click on the Accounting section
- Then click on the x left to match link for the account you want to fix the opening balance for
- Next, click on the More Actions button
- Select Reset Your Opening Balance
- Choose a new Reconciliation Start Date
- Then enter in the new Account Balance as of Start Date
- Click on Continue
- Confirm the details and click Reset to finish
- You can now match up transactions with the new opening balance.
Why is my Bank Account Balance and my FreshBooks Balance not matching?
At the top right of your Bank Reconciliation, you'll see two balances which represent different amounts:
- Bank Account Balance - This is your Opening Balance +/- what you have reconciled in your FreshBooks account (Payments will increase the balance, Expenses decreases it)
- FreshBooks Balance - This is your Bank Account's balance in real-time (as of the most recent sync)
If the two numbers don't match, either:
- Something is missing in FreshBooks (like an Expense, Invoice or Other Income entry) - you’ll need to add it in
- The Opening Balance was set incorrectly - you can change it with the steps above
What happens if I reset my Opening Balance?
If the Opening Balance that you set in your bank account is incorrect, you can reset it to the new correct amount. This will not affect any previously matched transactions - those will remain. Your FreshBooks Balance will now update to reflect the new Opening Balance.
What happens if I disconnect my bank account in Bank Connections?
We strongly recommend avoiding disconnecting your bank account to troubleshoot a Bank Connection issue, to help avoid any duplicate transactions from coming in. If you have disconnected a bank account, your transactions will stop importing into both Bank Reconciliation and into your Expenses.
Any matched transactions from this disconnected bank account will still remain. You can clear this out so that if you reconnect this bank account again, these transactions come into the active connection instead. Use the below steps:
- Click on the Accounting section
- In the Bank Reconciliation widget, if you have your disconnected accounts hidden, click on the filter next to Bank Reconciliation
- Then check off the Show disconnected accounts box
- If your disconnected accounts aren't hidden, click on the x left to match link next to the Bank Account that's disconnected in the Bank Reconciliation widget
- Inside the bank account you're reconciling, in the top right corner, click on the More Actions button
- Click on Clear Disconnected Account
- Then click Continue
- Next, click Clear Account to finish. You'll be taken back to the Accounting section and this disconnected bank account should now display a Set your opening balance link instead of x left to match. This means there are no longer any transactions available inside that account.
How do I close my books? How do I do my month end closing?
We’re currently still working on this, but in the meantime, you can use the below steps:
- Ensure all your transactions have been matched in Bank Reconciliation up to end of month period
- Run your Reports and export in the format of your preference
- Keep these Reports somewhere safe
- Repeat steps 1-3 at the end of each month.
Use the saved reports to compare as you re-run the reports every month. If the balances are off, you have recorded transactions in an incorrect period.
A personal transaction from my bank account ended up being imported into Bank Reconciliation. How do I remove this?
Mark the personal transaction as a Bank Transfer and it will be removed without affecting your books.
If it is an Owner’s Draw or a disbursement that needs to be recorded, please follow the steps in the Chart of Accounts FAQ here.