Bank Reconciliation

Bank reconciliation in DiverDash helps you ensure that your financial records match your actual bank statements. This critical process identifies discrepancies, catches errors, and maintains accurate financial data for your dive center.

What You'll Learn

• How to perform monthly bank reconciliation in DiverDash

• How to match transactions between your bank and DiverDash records

• How to handle unmatched transactions and discrepancies

• How to maintain accurate cash flow tracking

Before You Start

Make sure you have:

• Bank reconciliation permissions in DiverDash

• Bank statements for the period you want to reconcile

• Bank accounts properly set up in your Chart of Accounts

• Payment methods mapped to correct bank accounts

• Understanding of your bank's transaction timing and fees

Understanding Bank Reconciliation

Why Bank Reconciliation is Important

Accuracy Verification:

• Ensures DiverDash records match bank reality

• Identifies data entry errors or missing transactions

• Catches unauthorized or fraudulent transactions

• Maintains reliable financial reporting

Cash Flow Management:

• Provides accurate bank balance information

• Helps predict cash availability

• Identifies timing differences between records and bank

• Supports better financial decision making

Audit Trail:

• Creates documented proof of financial accuracy

• Supports tax preparation and audits

• Maintains compliance with accounting standards

• Provides historical reconciliation records

Common Reconciliation Differences

Timing Differences:

• Checks written but not yet cashed

• Deposits made but not yet cleared

• Electronic transfers in process

• Weekend and holiday processing delays

Bank Fees and Charges:

• Monthly account maintenance fees

• Transaction fees

• Overdraft charges

• Wire transfer fees

Interest and Credits:

• Interest earned on account balances

• Bank credits or refunds

• Automatic deposits

• Merchant processing credits

Accessing Bank Reconciliation

Step 1: Navigate to Bank Reconciliation

1. Go to Finance → Bank Accounts

2. Select the account

3. Click Start Reconciliation on the account page, or open the account and choose Start Reconciliation

4. On the reconciliation page, use the tabs New Reconciliation and Reconciliation History

Step 2: Set Reconciliation Parameters

Bank Account Selection:

• Choose the specific bank account to reconcile

• Ensure you have the correct bank statement for this account

• Verify the account is active and properly configured

Reconciliation Period:

• Select start and end dates for reconciliation

• Usually matches your bank statement period

• Common periods: monthly, weekly, or custom date range

Starting Balance:

• Enter the beginning balance from your bank statement

• Should match the ending balance from previous reconciliation

• If first reconciliation, use account opening balance

Ending Balance:

• Enter the ending balance from your bank statement

• This is the target balance for reconciliation

• Must match exactly for successful reconciliation

Reconciliation Process

Step 1: Review Bank Statement

Before starting in DiverDash:

1. Obtain your bank statement for the reconciliation period

2. Review all transactions on the statement

3. Note any bank fees, interest, or unusual transactions

4. Identify any transactions not yet recorded in DiverDash

Step 2: Match Transactions

Manual Matching:

• For transactions not automatically matched

• Select DiverDash transaction and corresponding bank transaction

• Click Match to link them together

• Add notes if needed to explain the match

Transaction Matching Criteria:

• Date: Should be within a few days of each other

• Amount: Must match exactly (including cents)

• Description: Should be similar or related

• Type: Debit/credit should match transaction direction

Step 3: Handle Unmatched Transactions

Bank Transactions Not in DiverDash: These appear on your bank statement but not in DiverDash records.

Common Examples:

• Bank fees not yet recorded

• Interest earned

• Automatic payments

• Deposits not yet entered

• Electronic transfers

Actions to Take:

1. Record Missing Transaction: Add the transaction to DiverDash

2. Ignore Transaction: Mark as ignored if not relevant (rare)

3. Investigate: Research unusual or unexpected transactions

DiverDash Transactions Not on Bank Statement: These appear in DiverDash but not on your bank statement.

Common Examples:

• Recent transactions not yet processed by bank

• Checks written but not yet cashed

• Pending electronic transfers

• Future-dated transactions

Actions to Take:

1. Leave Unmatched: If transaction is recent and will appear on next statement

2. Verify Transaction: Confirm transaction was actually processed

3. Correct Error: Edit or delete if transaction was entered incorrectly

Step 4: Add Bank-Only Transactions

Recording Bank Fees:

1. Click Add Bank Transaction or Record Bank Fee

2. Date: Use date from bank statement

3. Description: "Bank fee - [description]" or similar

4. Amount: Enter fee amount as negative (expense)

5. Category: Select appropriate expense category

6. Account: Ensure it posts to correct expense account

Recording Interest Earned:

1. Click Add Bank Transaction

2. Date: Use date from bank statement

3. Description: "Interest earned" or similar

4. Amount: Enter interest as positive (income)

5. Category: Select interest income category

6. Account: Post to appropriate income account

Recording Other Bank Transactions:

• Automatic payments or deposits

• Wire transfer fees

• Returned check fees

• Merchant processing fees

Step 5: Review and Finalize

Pre-Finalization Checklist:

• All bank statement transactions are matched or recorded

• All DiverDash transactions are matched or explained

• Bank fees and interest are recorded

• Calculated balance matches bank statement ending balance

• No unexplained discrepancies remain

Reconciliation Summary:

• Starting Balance: Beginning balance from bank statement

• Total Debits: Sum of all debit transactions

• Total Credits: Sum of all credit transactions

• Ending Balance: Calculated ending balance

• Bank Statement Balance: Actual ending balance from bank

• Difference: Should be zero for successful reconciliation

Step 6: Complete Reconciliation

1. Review the reconciliation summary for accuracy

2. Verify the difference is zero

3. Click Finalize Reconciliation (label may vary by environment)

4. Add any final notes about the reconciliation

5. Save the completed reconciliation record

Troubleshooting Reconciliation Issues

Reconciliation Won't Balance

Problem: Calculated balance doesn't match bank statement

Common Causes:

• Missing transactions in DiverDash

• Duplicate transactions recorded

• Incorrect transaction amounts

• Wrong account assignments

• Bank errors (rare but possible)

Solutions:

1. Double-check math: Verify bank statement calculations

2. Review unmatched items: Ensure all transactions are accounted for

3. Check for duplicates: Look for transactions recorded twice

4. Verify amounts: Confirm transaction amounts match exactly

5. Contact bank: If you suspect bank error

Cannot Find Matching Transaction

Problem: Bank transaction has no corresponding DiverDash record

Solutions:

1. Check date range: Transaction might be outside reconciliation period

2. Review similar amounts: Look for transactions with similar amounts

3. Check other accounts: Transaction might be in wrong account

4. Record missing transaction: Add transaction to DiverDash

5. Investigate further: Research unusual transactions

Duplicate Transactions

Problem: Same transaction appears multiple times

Solutions:

1. Identify duplicates: Look for identical date, amount, description

2. Delete duplicates: Remove extra transaction records

3. Check import process: Ensure transactions aren't imported multiple times

4. Review entry procedures: Train staff to avoid duplicate entry

Timing Differences

Problem: Transaction dates don't align between bank and DiverDash

Understanding Timing:

• Processing delays: Banks may process transactions 1-3 days later

• Weekend delays: Transactions may be delayed over weekends

• Holiday delays: Bank holidays affect processing times

• Cut-off times: Transactions after bank cut-off appear next day

Handling Timing Differences:

• Match transactions within reasonable date range (±3 days)

• Note timing differences in reconciliation comments

• Expect some transactions to appear on next statement

Best Practices

Regular Reconciliation Schedule

Monthly Reconciliation:

• Reconcile each bank account monthly

• Use bank statement closing date as reconciliation date

• Complete reconciliation within 10 days of statement date

• Don't skip months - reconcile every period

Weekly Reviews:

• Review bank activity weekly for unusual transactions

• Monitor large or unexpected transactions

• Catch errors early before they compound

• Maintain awareness of cash flow

Documentation and Records

Keep Reconciliation Records:

• Save completed reconciliation reports

• Store bank statements with reconciliation records

• Document any unusual transactions or adjustments

• Maintain audit trail for all reconciliations

Note Explanations:

• Add notes for unusual transactions

• Explain timing differences

• Document bank fee purposes

• Record investigation results

Error Prevention

Accurate Transaction Entry:

• Enter transactions promptly and accurately

• Use clear, consistent descriptions

• Verify amounts before saving

• Train staff on proper procedures

Regular Account Monitoring:

• Review bank accounts daily for new activity

• Monitor for unauthorized transactions

• Check for processing errors

• Maintain awareness of account balances

Integration with DiverDash Features

Payment Processing

Automatic Transaction Creation:

• Customer payments automatically create bank transactions

• Payment method mappings ensure correct account assignment

• Transaction descriptions include customer and payment details

Expense Management

Expense Payments:

• Business expenses create corresponding bank transactions

• Payment method determines which bank account is affected

• Expense categories map to appropriate Chart of Accounts

Financial Reporting

Reconciled Data:

• Financial reports use reconciled transaction data

• Bank reconciliation ensures report accuracy

• Cash flow reports reflect actual bank balances

Bank Statement Import (This feature is in development and will be available soon)

Supported File Formats

CSV Files:

• Most common bank statement format

• Automatically detects column mappings

• Supports various bank formats (Chase, Bank of America, Wells Fargo, etc.)

OFX/QFX Files:

• Standard financial data exchange format

• Used by many banks and financial software

• Comprehensive transaction details

Import Process

Step 1: Upload Statement

1. Go to Finance > Bank Accounts > [Account] > Import

2. Drag and drop your bank statement file or click to browse

3. Supported formats: CSV, OFX, QFX

4. Click Upload to process the file

Step 2: Review Import Results

1. System parses the file and extracts transactions

2. Review detected transaction count and date range

3. Verify column mappings are correct

4. Confirm import to add transactions to your account

Step 3: Transaction Processing

1. Imported transactions appear in your bank account

2. Transactions are marked as "unmatched" initially

3. Use the reconciliation interface to match with your records

4. System provides confidence scores for potential matches

Import Best Practices

File Preparation:

• Use recent bank statements (within 30 days)

• Ensure file is not password-protected

• Check that all columns contain data

• Verify date formats are consistent

Column Mapping:

• Date column should contain transaction dates

• Amount column should include positive/negative values

• Description column should have transaction details

• Reference column for check numbers or transaction IDs

Post-Import Review:

• Verify transaction counts match your statement

• Check that amounts are correctly imported

• Review any parsing errors or warnings

• Confirm date ranges are accurate

Reconciliation Reports

Historical Reconciliation Reports:

• View past reconciliation summaries

• Track reconciliation trends over time

• Identify recurring issues or patterns

• Support audit and compliance requirements

Unreconciled Transaction Reports:

• List transactions that haven't been reconciled

• Identify old unmatched transactions

• Clean up historical data

• Maintain data integrity

Next Steps

After completing bank reconciliation:

• Generate Financial Reports with accurate, reconciled data

• Review Cash Flow Analysis based on actual bank balances

• Update Expense Management with any missing bank transactions

• Verify Payment Processing accuracy through reconciliation

Need Help?

• Reconciliation won't balance? Check for missing transactions and verify amounts

• Cannot find matching transactions? Review date ranges and transaction descriptions

• Import issues? Verify file format and column mappings

• Historical reconciliation problems? Contact support for data cleanup assistance