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      How do I set up Bank Reconciliation?

      Bank Reconciliation requires a Bank Connection so that you can match transactions from your bank statement to your activity inside FreshBooks. First, you’ll set up a Bank Connection, then you’ll set an Opening Balance. Once completed, you can start reconciling transactions.

       

      Accounting features like Bank Reconciliation are available on trials as well as Plus and Premium plans. We also recommend inviting an accountant (if you haven’t already) to help you learn more about Bank Reconciliation.

       

       

      Set Up Bank Connection

      Set up a bank account to start importing transactions from with a Bank Connection:

      1. Click on the Accounting section
      2. Click on the Connect My Bank inside the Bank Reconciliation widget
      3. Then set up the Bank Connection with the steps outlined here
      4. Once connected, or if you’ve already connected any bank accounts previously, they’ll appear here, and you’ll see a Set your opening balance link.


      Notes:

      • Line of Credit and Loan bank accounts will not be displayed in Bank Reconciliation
      • You can only reconcile in a single currency

       

      Set an Opening Balance

      Once you have a bank account (or several) connected, you’re ready to set the opening balance which will determine the amount you’ll start reconciling with moving forward. Your invited Accountant can also help you with this set up:

      1. Click on the Accounting section
      2. You’ll now see your bank account(s) listed in the Bank Reconciliation widget, click on the Set your opening balance linkSet opening balance link inside Bank Rec widget.
      3. In the field provided, enter a date to start reconciling from (we recommend the first day of a recent bank statement or the start of a period on your credit card statement)
      4. Click Continue
      5. Enter your Opening Balance from the day you chose to start reconciling in the field
        1. If you’re setting up a credit card account, this is your Previous Statement Balance (if you’ve paid off your credit card balance, this would be $0)
      6. Choose the Currency of your bank account you’re reconciling
      7. Then click Continue again
      8. You’re now ready to start reconciling this account. Click Get Started to begin.

       

      At the top right of your Bank Reconciliation, you'll see two balances which represent different amounts:

      • Bank Account Balance - This includes your Opening Balance entered for this account, and all imported transactions in real-time (as of the most recent sync)
      • FreshBooks Balance - This is your Opening Balance entered for this account, +/- the transactions you have matched in Bank Rec, as well as any Journal Entries that have been posted to this account.

      Once you have transactions to reconcile, see How do I reconcile my transactions in Bank Reconciliation for next steps.

       

      FAQs

      I put in the wrong opening balance, how do I fix this?

      You can reset your opening balance with these steps: 

      1. Click on the Accounting section
      2. Then click on the x left to match link for the account you want to fix the opening balance for
      3. Next, click on the More Actions button
      4. Select Reset Your Opening Balance
      5. Choose a new Reconciliation Start Date
      6. Then enter in the new Account Balance as of Start Date
      7. Click on Continue
      8. Confirm the details and click Reset to finish
      9. You can now match up transactions with the new opening balance.


      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.


      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:

      1. Ensure all your transactions have been matched in Bank Reconciliation up to end of month period
      2. Run your Reports and export in the format of your preference
      3. Keep these Reports somewhere safe
      4. 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.

       

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