How do I reconcile simple transactions in bank reconciliation?

• Unmatched Transactions
• Likely Matches and Reconciling Transactions
  • Match
    • Filter Transactions
    • Create a New Entry
  • Mark As…
    • Mark as Transfer
    • Mark as Owner’s Equity
    • Mark as an Expense Refund
• Viewing Matched Transactions

Unmatched Transactions

• Unreconciled Bank Transactions in your account like deposits and invoice payments received (including bank transfers (ACH) and checks), and anything else that is an increase to your Bank Account Balance
• Will not affect your reports or FreshBooks Balance until you match or mark as inside bank rec
• Income entries are not automatically created when imported, they need to be manually added by creating a transaction before they can be matched

• These are unreconciled bank transactions in your account like expenses, bill payments made and anything else that is a decrease to your Bank Account Balance
• Displayed both under the Unreconciled Bank Transactions (left) and the FreshBooks Entries (right) sections inside your Bank Rec widget
• Bank connections automatically import expenses in FreshBooks to correspond with the money-out transaction imported from your bank account
• Will affect your reports since Expense entries are automatically created when they’re imported or created manually
  • These expenses flow through Petty Cash first when imported and in an unmatched status, but will be reassigned to a Bank or Credit Card account when matched
• If a money-out entry is Marked As, the associated imported expense entry will be automatically deleted and will not affect your Profit and Loss report
  • Use the deleted link in the Expenses section to review any deleted expenses

Likely Matches and Reconciling Transactions

1. Select the Accounting section
2. Your bank account(s) will be listed in the Bank Reconciliation widget, select the # left to match link
   
   
3. From here, review each row of matches and either:
   
   1. Uncheck any box(es) next to each row that is not a correct match (like expense or invoice payments, transfers between accounts, credit card payments) and select Confirm and Continue
   2. Leave all the boxes checked and select Confirm and Continue to reconcile all of them
   3. Or select the Skip button to ignore the Likely Matches and review all transactions individually instead.

• Match
  • Change the Date Range
  • Create a New Entry
• Mark As…
  • Mark as Transfer
  • Mark as Owner’s Equity
  • Mark as an Expense Refund

Match

1. In the Bank Account Transactions section on the left, check off a transaction
2. Then in the FreshBooks Entries section on the right, use the search bar if you need to find your entries, and check off one or several entries that match
3. Select the Match button. 
   
   

Filter Transactions

1. Select the settings icon on the right side of the search bar under either column
   
2. Choose a new Start and End date
3. If needed, under FreshBooks Entries, you can specify the Entry Type (Payments and Other Income, Check Payments, Expenses, Credits, or Bill Payments) 
4. Select Apply to save and new entries will appear
5. In the Bank Account Transactions section on the left, check off a transaction
6. Then in the FreshBooks Entries section on the right, check off one or several entries that match
7. Select the Match button.

Create a New Entry

1. Under FreshBooks Entries, select the Create a New Entry button
   
2. Then choose from Expense, Other Income, Payment, or Bill Payment depending on what kind of matching entry you need to create
3. Once saved, this entry will now appear in the list of FreshBooks Entries
4. Check off the entry or entries that you’ve just created
5. Select the Match button.

Mark As...

• Mark as Transfer
• Mark as Owner’s Equity
• Mark as an Expense Refund

Mark as Transfer

1. Check off the box next to the Bank Account Transaction
2. Select the Mark As button at the top
3. Then select Transfer
   
   
4. Enter details on the transfer as needed in the Note box
5. Select Submit to finish and the Bank Account Transaction will no longer appear as an option to match. The corresponding imported expense on the FreshBooks Entries side will also be deleted automatically
6. Make sure to also Mark as Transfer in the other account that received a transfer or was transferred from, if that account is also connected to bank rec to ensure your books remain accurate.

• When marked as a transfer, two accounts will be affected in your reports:
  • Money-in transactions marked as transfers:
    • Will increase the balance in the connected Bank account and decrease the balance in the Petty Cash account
  • Money-out transactions marked as transfers:
    • Will decrease the balance in the connected Bank account and increase the balance in the Petty Cash account
• Once Marked as Transfer, these can be found in the Matched tab in chronological order of when you marked them, with a note indicating it's a Bank Transfer
• Use Mark as Transfer for any entries that have to be recorded with a journal entry (e.g., loan, long-term asset purchase, etc.) that need to be reflected in a custom account

Mark as Owner’s Equity

1. Check off the box next to the Bank Account Transaction
2. Select the Mark As button at the top
3. Then select Owner’s Equity
   
4. Enter details on the equity as needed in the Note box
5. Select Submit to finish. The Bank Account Transaction will no longer appear as an option to match. The corresponding imported expense will also be deleted automatically.

• Once marked as Owner’s Equity, you can find them in the Matched tab in chronological order of when you marked them, with a note indicating it's Owner’s Equity
• These transactions will also be located inside the Owner’s Equity account on the Chart of Accounts or the General Ledger report

Mark as an Expense Refund

1. Check off the box next to the Bank Account Transaction
2. Select the Mark As button at the top
3. Then select Expense Refund
   
   
   
4. Next, choose the Refunded Expense Category under Operating Expenses or Cost of Goods Sold
5. Then enter details about the refund as needed in the Note box
6. Select Submit to finish. The Bank Account Transaction will no longer appear as an option to match. 

• Once marked as an Expense Refund, you can find them in the Matched tab in chronological order of when you marked them, with a note indicating it's an Expense Refund
• The Expense Refund selected will reflect accordingly in your accounting reports
  • On the General Ledger report, expense refunds will appear under the account corresponding to the Refunded Expense category
  • On the Profit and Loss report, expense refunds will be reflected in the individual refunded expense category
  • On the Expense report, a breakdown of all refunds can be found in the Expense Refunds section at the end

Viewing Matched Transactions

1. Select the Accounting section
2. Then select the # left to match link for the account you want to review in the Bank Rec Widget
3. Select the Matched sub-tab.
   
   

• Transactions marked as transfers, owner’s equity and expense refunds will specify the type of entry under the FreshBooks Entry column header
• If you’ve accidentally matched the wrong transactions together, you can unmatch them by checking off the box(es) next to the match(es), and selecting the Unmatch Transactions button above the list. The transactions from this match will then appear in the Unmatched sub-tab for you to reconcile correctly
• Editing or deleting a FreshBooks entry like expenses, invoices, other income and payments will cause matched transactions to unmatch