Agency Accounting

  Reconcile Bank Account

With InsurancePro, you can reconcile transactions from your bank account, which basically means that you can match transactions that you entered in InsurancePro with the actual transactions that were made in your bank account. Tallying each transaction has many benefits. By reconciling transactions, you will be able to track all your transactions. If you reconcile in a timely manner, there will be very few chances of missing a payment that was supposed to be made. You will also be able to catch errors by vendors if they debit an incorrect amount you’re your Bank Account. The chances of a fatal mistake are minimized as missing transactions can be tracked in a timely manner if you frequently reconcile your bank account.

You can access the Reconcile Screen from the “Payments” option in the Main Menu.

The concept of reconciliation is simple enough. You start out with a balance that is already in your Bank Account. Now every time you make a deposit, your Account Balance increases, and every time there is a withdrawal (Check written or amount debited), the Account Balance decreases. After you have checked marked all the transactions (Deposits and Withdrawal), you should enter your Current Balance from your Bank Statement. If all the transactions are accounted for, the Difference will be zero. If the difference is not zero, then that means that there are transactions not accounted for, and there might be a possible mistake or error somewhere.

When you enter the Reconcile Screen, all the transactions done in your bank account is displayed. The deposits and withdrawals are listed in their separate sections. Once you check mark a transaction, InsurancePro remembers that you have checked it. InsurancePro maintains the state (checked or unchecked) of each transaction. Most agencies group all their daily deposit together, and only the total deposit shows on their bank statement. InsurancePro is quite flexible here, as you can list each transaction in your daily deposit individually, or you can group them by date, to only show the total from that particular day. You can always easily switch between the two views. When the DIFFERENCE does come down to zero, and you are satisfied that all transactions have been tallied properly, you can hit the Reconcile button. This will permanently reconcile the deposits and withdrawals for the reconciliation period, and all the transactions you had checked will be removed from the list.

Note: To properly reconcile, an agency must enter all the debits and credits done in their bank account into InsurancePro.

It is important to note that once transactions are reconciled, they CANNOT be edited, voided or deleted. Therefore it is advised that care be taken when reconciling payments because once reconciled NO changes can be made to the reconciled payments. However, administrators can setup InsurancePro so that even reconciled payments could be changed.