{{NOT RESTYLING THIS ARTICLE FOR NOW. MANY CHANGES WILL HAPPEN IN THE UPCOMING 2 MONTHS INCLUDING A MAJOR CHANGE IN TERMS OF IMPORTING STATEMENTS. Currently there's a big trace of import-related buttons and sections which cannot simply be removed by screenshots or be left out of our Introduction articles where we generally explain each section and field in the screen. Therefore, instead of creating more confusion for clients, and since there will be just one or very few clients in these first months, we'll be publishing only the steps to reconcile without going into much details about fields. We'll keep the descriptive part for when George will take care of completely restructuring the Reconciliation feature (AI will be big on this). Many screens will most probably change/be replaced/disappear}}
Table of Contents
Introduction
This article is designed to give you a comprehensive overview of the Reconciliation menu. You'll discover a general description of each section, along with their various interconnections. In fact, the system offers you multiple ways to achieve the same goal 🎯. It's up to you to choose the one that fits you best.
If you need more details on any of the topics covered, you'll find handy links and buttons throughout the article, as well as a valuable Related Articles section at the end. Now, you might be thinking 🤔...
What Does 'Reconcile' Mean in Accounting?
What Does 'Reconcile' Mean in Accounting?
The word reconcile in accounting means 'to bring together' or 'to make one'. So, what are we bringing together? What are we making one? Generally, it's the accounting records. We bring together figures from Indigo Business accounts and those recorded in statements, such as bank statements, tax statements, etc.
What's the Purpose of Reconciliations?
What's the Purpose of Reconciliations?
The purpose of reconciliations is to highlight any errors in your accounts, such as potential duplicates or missing transactions (the most common error), allowing you to rectify and justify what’s needed. In other words, reconciliation is a comparison process between accounts and statements to identify what needs to be corrected or added in your ledgers, avoiding discrepancies and keeping your records accurate.
Which Accounts do you Usually Reconcile?
The most common account which gets reconciled is a bank account. To do so, you would ask for a statement to your banks to be compared to your bank accounts records within Indigo Business. We'll see later on how to process a reconciliation in the platform. However, not only bank accounts can be reconciled but also:
Tax accounts (tax charged to the business or company and payments made you can download statements from your local tax authority and reconcile that statement to what you have on your account software.
Director accounts (The director current account is a summary of transactions (salary, dividends etc.) between the director of the company (being a separate legal entity) and the company itself.). Bank statements related to the director’s transactions.
Any other account you can think of all these things generally can be reconciled and do need reconciling on a regular basis.
Prerequisites
Prerequisites
First of all, make sure to gather all the necessary details to proceed with the Reconciliation, such as your bank, tax statements etc.
Check that all the transactions are accurately recorded into the respective accounts (invoices, withdrawals etc.).
Once done, you are ready to run the Reconciliation in Indigo Business.
📋 Note: Only one reconciliation record can be created per account at a time. To run another one, you must first finalise the ongoing reconciliation process.
The Reconciliations Menu
From the top horizontal menu, go to Nominal > Reconciliations section. Here you can find two options:
📈 Dashboard
📋 Reconciliations
📈 Dashboard
In the Reconciliations Dashboard page you can consult the list of all the accounts marked as reconcilable, specifically in the Reconcilable Nominal Accounts grid. You can switch the view from All accounts, to Bank or Nominal using the Reconciliation type filter at the top right of the screen.
But that's not all, you can also perform actions thanks to buttons placed through out the page. Now let's dig a bit deeper into the grid and the buttons.
Buttons
➕ New Reconciliation: select it to open the New Reconciliation pop-up. Its content will change according to the selected account (nominal or bank). More on this screen ➡️ here.
Once you click on Continue, you'll be redirected to the Reconciliation (ID No) - [Account Name (Account Number)]. Check this screen out ➡️ here.
Manage Reconciliations: it's a shortcut button to Nominal > Reconciliations > 📋 Reconciliations. Find out how to use it 👉 here.
Show Chart
Show Chart
View daily or monthly running balances for up to three accounts. Use the dropdowns and buttons to select a timeframe, toggle Days/Months for the x-axis, export the chart or data, hide the chart or legend, and display foreign currency amounts.
The Reconcilable Nominal Accounts Grid
The Reconcilable Nominal Accounts Grid
There are three main elements related to the grid:
Action buttons: at the top left of the grid in a kebab menu.
Reactive grid content: inside the grid.
Grid filters: at the top right of the grid. More on them here.
Action Buttons
The kebab menu allows you to take actions on the account currently highlighted in the grid.
View the account details: use it to be redirected to the Reconciliation Dashboard specifically for that account.
Start Reconciliation: use it to start a reconciliation for the selected account in the grid. It works as the Start now button in the grid (check Reactive Grid Content).
It turns into Resume Reconciliation if you highlight a record to resume.
Reactive Grid Content
A/C Code value: it redirects you to the selected account's Reconciliation Dashboard. Same as clicking on View the Account details.
Balance (/Foreign balance) value: it redirects you to the Nominal account transactions screen. Here you'll see the full list of transactions (both regular and reversed) making that balance. More on this screen ➡️ here.
Resume: when this appears, it indicates that a reconciliation process is currently in progress for that specific account. By clicking on it, you will be redirected to the Reconciliation (ID No) - [Account Name (Account Number)], at the stage where you left the previously initiated reconciliation process.
Start New: it works exactly as the New Reconciliation button. However:
The selected account will already appear greyed out in the Nominal Account dropdown.
The pop-up will already be titled New Nominal (or Bank) Reconciliation based on the selected account.
📋 Reconciliations
The Reconciliations screen is divided into two tabs. They both display data in a grid whose view can switch from All accounts, to Bank or Nominal using the Reconciliation type filter at the top right of the screen. You can also display reversed records by toggling the Show Reversed switch on.
Reconciliations tab: here you can consult the list of reconciliations you've completed and those which are in progress (Status column), along with the Reconciliation Amount per record.
Reconciliation History tab: here you can check the history of each transaction reconciled.
Now let's have a look at the available filters, buttons and reactive grid content.
Filters and Buttons
Filters and Buttons
Whether you are in the Reconciliations or Reconciliation History tab, you can use the filtering options at the top right of the grid to narrow the content down according to your needs. More on how to filter grids here.
At the top left, you'll see four buttons:
New Reconciliation: it appears in both tabs. It works as the one in the Dashboard screen.
Refresh: it appears in both tabs. It refreshes the content after some changes occurred.
Delete: use it to delete the selected reconciliation record. It only works for the ones in In Progress status (orange label).
Reverse reconciliation: use it to reverse a reconciliation.
Reactive Grid Content {{to check if adding table or simple bullet list}}
Reactive Grid Content {{to check if adding table or simple bullet list}}
Reconciliations tab, the Reference column contains clickable values. In the Reconciliation History tab, you can click the Tran ID value. The A/C name column's values are available and clickable in both tabs.
Tab | Field | Redirection Screen |
Reconciliations |
| |
Reconciliation History |
|
|
Reconciliations tab
Reference
Account Name
Reconciliation History tab
A/C name
Tran ID
Reference: it redirects you to the Reconciliation (ID) [Account Name (Account No)] page for the selected account.
A/C name
A/C name
It opens a drawer with the account details. You can edit the record using the ✏️ Edit and Save buttons. All fields except Reconciliation Type are editable.
⚠️ Editing an account here is the same as editing it in Nominal > Nominal Accounts, so all associated records will reflect the change.
⚠️ Careful
The Reset reconciliation button allows you to reset the Reconciliation Type field to None. A warning message will inform you that the Reconciliation history will be cleared and any In Progress reconciliation will be lost. Click on Reset to proceed or on No do cancel the action.
Tran ID: it opens the reconciled transaction record showing the relevant credits and debits.
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