Bank Reconciliation: Difference between revisions

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==Basic Steps==
The Bank Reconciliation is an essential part of treasury work. Its purpose is to verify that your records in Jewel agree with what is actually happening in your bank account. Reconciling makes sure that you entered all transactions in Jewel and that you entered them correctly, as well as giving you a chance to catch any errors the bank may have made, or any fraudulent transactions.
# On the Jewel main screen, click Reconcile.
# Double-click on the account you are reconciling, or select the account and click Reconcile.
# Look at your Bank Statement and find the Ending Date. Make sure it matches the Ending Date pre-filled in Jewel. If the difference is only a few days, correct the date in Jewel. If Jewel's date is in the wrong month, figure out why by looking at Previous Bank Recs or contact technical support for help.
# Look at your Bank Statement and find the Beginning Balance for this period. Make sure that it matches the Beginning Balance pre-filled in Jewel. If not, contact technical support for help.
# Look at your Bank Statement and find the Ending Balance for this period. Enter this amount in the Ending Balance text box.
# Compare the transactions on your Bank Statement to the transactions in Jewel. Every transaction on your bank statement should be recorded in Jewel, exactly as it appears on your bank statement. Work your way down the bank statement, matching each transaction with a corresponding transaction in Jewel, and checking off each transaction in Jewel as you find it.
# When you have checked off a corresponding entry in Jewel for each and every transaction on the bank statement, the Difference in Jewel (just above the sunset picture) will be 0.00. Click OK to complete the Bank Reconciliation and print your Bank Reconciliation Report.


If you wish to leave the reconciliation at any point before reaching a Difference of 0.00, click Cancel, then Yes to save your work.  
Best practice is to reconcile monthly before closing the month. This allows you to catch mistakes or omissions when they are easiest to correct. However, if you cannot reconcile during your month-end closing for some reason, you may do so at any point during the monthly process of any future month by clicking Reconcile on the Jewel Home Screen. Keep in mind, though, that postponing or skipping reconciliation means that your Jewel records may not accurately reflect what has happened at the bank. Also, there is usually a strict time frame for reporting fraudulent transactions. So reconciliations should always be completed as soon as possible after receiving the bank statement.


==Possible Complications==
The links below will answer your Bank Reconciliation-related questions.
===Missing transaction===
If you are reconciling a previous month (not the month you're currently working on in Jewel), first click "Show More Deposits" or "Show More Checks". If the transaction you're looking for is dated after the reconciliation Ending Date, you'll see it there and can check it off, then click OK to return to the regular reconciliation screen.


====Interest earned====
==Basic Info and Quick Start==
Click "Interest Earned or Deposit Correction". Fill in the abbreviated General Journal form, including the Local Fund to credit the interest to. Click Add Entry to finish. Many small churches simply credit the interest to Church Budget. Larger churches may wish to create a specific fund to track interest income.
[[Why Are Bank Recs Important?]]


====Bank Fees====
[[Quick Start Guide to Bank Reconciliations]]
Click "Bank Fees or Check Correction". Fill in the abbreviated General Journal form, including the Local Fund to charge the fee to. Click Add Entry to finish. Most churches will charge fees to Church Budget or to a separate Bank Fees fund if they wish to track more closely.


====Offering Deposits====
[[Quick Start - Adding Missing Transactions]]
Cancel out of the bank reconciliation (click Cancel, then Yes to save your work) back to the Jewel home page.


If the NextStep button says Start New Offering, then enter the missing offering as usual. If the NextStep button says Remit to Conference, go to Offerings (at the top of the page), then Start New Offering, and enter the offering as usual.
[[Making Corrections|Chapter 7: Making Corrections]]


If the NextStep button says anything else, contact tech support for assistance. (Or you can wait to enter the offering in the next month, as long as it will still be in the same calendar year. It's OK, although not best practice, to enter the May 31 offering on June 1. It is not acceptable to enter a December 31 offering on January 1, per IRS regulations.)
[[Media:3510_-_Tour_of_the_Reconcile_Features_in_Jewel.pdf|Pictorial Tour of Jewel's Bank Reconciliation]]


====Non-offering deposits====
==Reconciling Specific Types of Accounts==
Click General Journal Entry (below the picture). Fill in the memo to indicate the source of the funds and any other pertinent information. Fill in the amount of income, and the Local Fund(s) that the income should be credited to. Click OK to finish and return to the reconciliation.
[[Reconciling the Checking Account]]


====Checks or other payments====
[[Media:3530_-_Reconciling_the_Debit_Account.pdf|Reconciling the Debit Account]]
Click Write Checks (below the picture). Fill out the check form as usual (clicking Electronic Payment if appropriate). Click OK to finish and return to the reconciliation.


====Remittance check====
[[Media:3540_-_Reconciling_the_Savings_Acct.pdf|Reconciling the Savings Acct]]
Contact tech support for assistance.


===Transaction doesn't match===
[[Setting Up and Reconciling a CD Account]]
If the bank's transaction doesn't match what's recorded in Jewel, then Jewel must be corrected.


====Checks====
==Adding Specific Types of Transactions==
Dated in current month: Click on Check Report (above the picture on the right). Click on the check to be corrected, then on Edit Check. Make the necessary corrections, then click OK to return to the reconciliation.
[[Entering Bank Account Interest]]


Dated in a previous month: Click on Bank Fees or Check Correction. Use the Account that the check you're correcting was charged to. If the check amount on the bank statement is higher than in Jewel, your correction will be an expense. If the bank statement shows a lower amount than is recorded in Jewel, your correction will be income. The Memo will say "Correct ck#1234" or something similar. Click Add Entry to finish.
[[Electronic Payments - Timing, Dates, Memos]]


Remittance Check: Contact tech support for assistance.
==Troubleshooting==
[[Where Did My Reconciliation Go?]]


====Offering Deposits====
<br><br>
Deposit correction involves more finesse, as the correction method depends on the issue. Precise end-of-year donor receipts are essential, so if you can trace an error to a particular donor's envelope, it should be corrected there. If you cannot, especially if the error is small, a General Journal correction is appropriate. If you aren't sure of the method to use, contact tech support for assistance.
-----
[[The Basic Jewel Processes|Return to Chapter 3: The Basic Jewel Processes]]


Small, untraceable error: Click on Interest Earned or Deposit Correction. Use Church Budget for the Account. If the deposit amount on the bank statement is higher than in Jewel, your correction will be an income. If the bank statement shows a lower amount than is recorded in Jewel, your correction will be expense. The Memo will say "Correct 7/5/25 deposit" or something similar. Click Add Entry to finish.
[[Budget|Continue to Chapter 5: Budget]]
 
Large, untraceable error: Same as above, but if this is happening more than extremely infrequently, ask your conference treasury department for help in establishing better controls on your offering counting.
 
Traceable error in a previous month: Contact tech support if the error involves a specific donor. If the error involves an anonymous donor or loose offering, click on Interest Earned or Deposit Correction. Use the appropriate fund for the Account. If the deposit amount on the bank statement is higher than in Jewel, your correction will be an income. If the bank statement shows a lower amount than is recorded in Jewel, your correction will be expense. The Memo will say "Correct 7/5/25 deposit" or something similar. Click Add Entry to finish.
 
Traceable error in current month: Click on Deposit Report (above the picture on the right), then click on the deposit to be corrected. Click Trial Deposit, then click on the envelope to be corrected. Click Edit Envelope, and make your corrections. Then, if you use the Deposit Slip feature, click Edit Deposit Slip, correct the deposit slip, then click OK and Close until you get back to the Bank Reconciliation screen. If you do not use the Deposit Slip feature, check the Edit box at the top left of the Contribution Entry screen, correct the offering total, then click Close until you get back to the Bank Reconciliation screen. More detailed instructions can be found at [[#Make Corrections|In the ]]
 
====General Journal====
Find the General Journal you need to correct. You can do this by:
1. Click General Journal Entry at the bottom of the screen, then use the Previous button to find the one you need. This works very well if you mistyped the interest or bank fee amount you just entered.
2. Click Deposit Report or Check Report (above the picture on the right) and click on the entry to be corrected.
When you see the General Journal Entry to be corrected, click Edit Entry, make your corrections, then click OK to finish.
 
 
==FAQs==
 
 
''Can old bank reconciliations be viewed/printed?''
 
Yes. From the Main Screen QuickLinks, select Reports & Graphs, then Bank Reconciliation. Here you can choose the account and date you wish to view/print.
 
These reports are also accessible from the Bank Reconciliations screen by clicking Previous Bank Recs... (above the picture on the right).
 
 
''I'm trying to do a bank reconciliation, but there are no checks showing up! What happened, and how can I fix it?''
 
Your checking account may have been accidentally changed to a Local Fund. It can be changed back by going to Maintenance, Edit Accounts. Select your Checking Account in the left-hand column, then in the center column under Account info look to see what Type it is. If it is not correct, check the Edit box. Click on type Bank Account (Checking, Savings). Click OK to accept this change and leave.

Latest revision as of 13:00, 21 November 2025

The Bank Reconciliation is an essential part of treasury work. Its purpose is to verify that your records in Jewel agree with what is actually happening in your bank account. Reconciling makes sure that you entered all transactions in Jewel and that you entered them correctly, as well as giving you a chance to catch any errors the bank may have made, or any fraudulent transactions.

Best practice is to reconcile monthly before closing the month. This allows you to catch mistakes or omissions when they are easiest to correct. However, if you cannot reconcile during your month-end closing for some reason, you may do so at any point during the monthly process of any future month by clicking Reconcile on the Jewel Home Screen. Keep in mind, though, that postponing or skipping reconciliation means that your Jewel records may not accurately reflect what has happened at the bank. Also, there is usually a strict time frame for reporting fraudulent transactions. So reconciliations should always be completed as soon as possible after receiving the bank statement.

The links below will answer your Bank Reconciliation-related questions.

Basic Info and Quick Start

Why Are Bank Recs Important?

Quick Start Guide to Bank Reconciliations

Quick Start - Adding Missing Transactions

Chapter 7: Making Corrections

Pictorial Tour of Jewel's Bank Reconciliation

Reconciling Specific Types of Accounts

Reconciling the Checking Account

Reconciling the Debit Account

Reconciling the Savings Acct

Setting Up and Reconciling a CD Account

Adding Specific Types of Transactions

Entering Bank Account Interest

Electronic Payments - Timing, Dates, Memos

Troubleshooting

Where Did My Reconciliation Go?



Return to Chapter 3: The Basic Jewel Processes

Continue to Chapter 5: Budget

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