How do I reconcile complex transactions in bank reconciliation?

• Balances Not Matching
• Complex Transactions
  • Bill Payment Reconciliation
  • Invoice Payment Refunds
  • Manual Journal Entries
  • Online Payment Deposits and Fees
  • Payroll Apps
• Missing Expenses

Balances Not Matching

• Refresh your bank connection to make sure you have imported the latest transactions
• Confirm that the opening balance was entered correctly - you can change your opening balance with these steps
• Compare all unmatched and matched transactions from the left side of Bank Rec (under Unreconciled Bank Transactions) to find any missing or incorrect entries - if needed, you can add, edit, or delete these transactions to fix

• Match or mark as all the transactions on the left side of your Bank Rec until there are none left
• Check for journal entries posted to the Bank account - this will cause a difference as they will change the FreshBooks Balance but will not affect the Bank Account Balance

Complex Transactions

Bill Payment Reconciliation

• Mark an expense as a bill payment through Bill Payment Reconciliation
• Match a bank transaction on the left side of bank rec to a bill payment FreshBooks Entry

Invoice Payment Refunds

1. First, mark the invoice as refunded using the steps in How do I refund a payment?
2. Then inside Bank Reconciliation, match the invoice payment with the refund from your Unreconciled Bank Transactions, along with the new $0 payment created under FreshBooks Entries
3. Delete the expense detailing the refund, if one was created.

1. First, mark the invoice as partially refunded using the steps in How do I refund a payment?
2. Then inside Bank Reconciliation, match the partial refund to the original matched invoice payment under Unreconciled Bank Transactions
3. Delete the expense detailing the refund, if one was created.

Manual Journal Entries

• Loans or Line of Credits
• Long-Term Assets
• Inventory
• Tax Remittances

1. Select the transaction on the left under Bank Transactions
2. Then select the Mark As button and select Transfer
3. In the Notes field, leave details on the manual journal entry for your accountant and select Submit to save, this will affect the Petty Cash account depending on the transaction type
4. As an accountant, or with Advanced Accounting activated, create a journal entry to move the correct transaction from Petty Cash to the desired account instead.

Online Payment Deposits and Fees

1. Log into your Stripe dashboard
2. Select Reports
3. Then select the Balance report
4. Adjust the date range as needed and select Download.

Payroll Apps

1. In your Bank Rec widget, take note of your Bank Account Balance - after completing all of the below steps, this should remain the same
2. Next, find the Gusto transactions for one payroll period under Unreconciled Bank Transactions, add them up and ensure the total equals the Gusto transactions under FreshBooks Entries too
3. Note the amounts for the Gusto FreshBooks Entries, then check off the boxes next to the Gusto transactions under Unreconciled Bank Transactions
4. Select the Bulk Actions button
5. Then select Edit
6. Edit the Amount fields to match the FreshBooks Entries amounts you noted earlier
7. Select Save Changes to finish
8. Then Match the edited Gusto Unreconciled Bank Transaction Entries to the Gusto FreshBooks Entries.

Missing Expenses

• The expense has already been matched to another transaction. You can check in the Matched tab inside your Bank Rec to confirm this.
  
  
• The expense was not imported from this bank connection, and instead was imported and created by a different bank connection (including disconnected connections of the same Bank/Credit Card account). Only expenses from the same bank connection will appear inside your Bank Rec widget.
  
  
• The expense has been deleted inside your expenses section. Duplicate expenses can occur if you’ve disconnected and reconnected the same bank connection, and the expense from the disconnected bank connection may be in your active expenses, while the newer expense from the active bank connection is in your deleted expenses. Deleting the active and restoring the deleted expense can be done with the steps below.

1. First, check for all disconnected bank accounts, since expenses created from the first connection will not appear in the new connection, regardless of whether it’s the same bank account
2. If this is a reconnected account, go to the Expenses section and select the deleted link at the bottom of the list of expenses
3. Find the duplicate expense that belongs to the active bank connection by comparing the Source name
4. Once you’ve found the duplicate expense, select it and select OK to undelete it
   Return to your list of active expenses by selecting All Expenses at the top of the list
5. Next, find the duplicate expense that belongs to the disconnected bank account and hover over it, then select the trashcan icon to delete it.