Bank Reconciliation

Use the Bank Reconciliation feature to reconcile your bank statements and general ledger closing balances for all bank accounts each month.  Reconciling bank accounts involves clearing checks and deposits that have cleared the bank, entering adjustments to the general ledger, and printing a detailed reconciliation worksheet that compares the adjusted bank balance with the adjusted general ledger balance.  When the reconciliation is complete, you can automatically enter adjustments such as bank service charges to the general ledger.  You can also save reconciliations to work on later.


  1. Before starting with the bank reconciliation, make sure, you do not have anything in the Make deposits window for that bank for the month for which you are doing reconciliation.
  2. Click on Banking and Reconciliation and select Reconcile Bank Accounts.
  3. Select the bank account you want to reconcile.
  4. In the statement date, select the date of the bank statement which is last day of the month.
  5. If the bank statement date is the first date of next month, the reconciliation should be done till the last day of the current month.
  6. Select the G/L period date range from first date of the month till the last date of the month.
  7. Type in the bank statement ending balance (Balance reflecting on the bank statement on the last date of the month).
  8. Click on Proceed.
  9. On the top left hand side of the screen the bank account will be displayed.
  10. On the left side of the screen, the cheques which are issued or posted in ESILAW will be displayed.
  11. You have to match these cheques with the withdrawals (debit amounts) in the bank statement.
  12. Clear only those cheques which have got cleared as per the bank statement.
  13. Make sure that the total of cheques (amount) cleared reflected on the above screen should match the total withdrawals (amount) on the bank statement.
  14. On the right-hand side, all the deposits posted in ESILAW will be displayed.
  15. Clear the deposits that have got cleared as per the bank statement.
  16. The total deposits and other credits (amount) cleared as reflected on the above screen should be equal to the total the deposits (amount) as per the bank statement.
  17. The worksheet adjustments are the temporary adjustments which should be cleared or deleted within one or two months.
  18. The Posting Adjustments are the Journal entries which gets posted to the General Ledger after you click on the Post Adjustments tab besides Close.
  19. You can post the bank or service charges reflected on the bank statement either by posting the Journal entry in your books or,You can also use the Write General cheques feature to post any bank or service charges.
  20. The recurring adjustments are the adjustments which gets posted to GL every month.
  21. You can enter NSF (Non-Sufficient Funds).
  22. After the difference is zero and all the amounts in the formula matches, you can print the worksheet.
  23. Print worksheet will print all the reports like Outstanding cheques, outstanding deposits and any worksheet adjustments you made.
  24. For reopening the previous month bank reconciliation, un reconcile everything in the current month and then reopen the previous month.


  1. The Opening balance as per GL should be equal to the closing balance of the last month as per G/L on the printed worksheet.
  2. The worksheet adjustments should not be carried forward for a longer period as those are the discrepancies which should be cleared.
  3. When you do the make deposits, the deposits should be finalized on the correct dates.
  4. While clearing the cheques, make sure the cheque number and the amounts are correct.
  5. In case of any reversal of cheque and reissue, make sure that all the three items are present in the bank reconciliation in ESILAW and you should always clear the original cheque and the reversal irrespective of the fact whether the reissued cheque has been cleared or not.
  6. In case you want to show the bank charges on the screen, then you should always do write General cheques otherwise, you can post the journal entry which will affect the GL closing balance but will not show up on the screen.
  7. If you are not able to find any cheque in the bank reconciliation but the same shows as posted in the books, you should run the cheque register till date in detail and find if the cheque has been cleared from the bank reconciliation.
  8. To identify the amount of deposit from the cumulative deposit and the date of make deposit, run the deposit and receipt detail report and look for the deposit amount or the audit number.