Reconcile Bank Account in Sage 50 – Step By Step Guide

Updated On: July 2, 2025 7:07 am

Using the Account Reconciliation screen, it is possible to match and verify accounts in Sage 50. Access it to compare your company records with the financial institution’s statement. A user can reconcile bank accounts, cash accounts, and credit card accounts.

Begin reconciliation once you get the account statement. Compare each bank statement transaction against the corresponding entry in the company file. It improves financial accuracy and maintains orderly, clean records.

Reconciliation assists in identifying bank discrepancies, suspicious activity, and data input errors. It enhances financial precision and keeps records clean and systematic. 

In this guide, complete information on the reconcile bank account in Sage 50 has been shared. From the benefits to the steps of reconciling in Sage 50, everything has been shared.

What is Bank Reconciliation?

A bank reconciliation helps to check whether the financial records of your company align with your bank statement. 

A bank reconciliation makes sure that the fees, bank charges, and interest are recorded in the right manner. This process gives you a statement that highlights any differences between your data and the bank’s records. In case both are similar, the reconciliation is done. 

Note: Proper reconciliation ensures reliable tax reporting. 

Also Read: Enable Bank Reconciliation in Sage 50

Importance of Reconcile Bank Account in Sage 50

In Sage 50, bank reconciliation aids in confirming the records’ legitimacy. It guarantees that the balance of your accounts and your bank account are same. This procedure assists in finding transaction issues and determining any suspicious activity.

Not to mention, it also identifies cheques that are not cleared.

Key Benefits of Reconcile Bank Account in Sage 50

Here is the list of the prime benefits of reconcile bank account in Sage 50 program:

• Less Audit Risks: Proper reconciliation minimizes the risk of audit problems and monetary fines.
• Enhanced Accuracy: Automated matching lowers mistakes and boosts data accuracy.
• Increased Compliance: Precise records help sustain internal controls and adhere to regulations.
• Enhanced Efficiency: Automation helps to save time and empowers finance teams to emphasize critical tasks.
• Improved Cash Flow Management: To make informed decisions, Sage 50 reconciliation offers live cash-flow tracking.

How to Reconcile Bank Account in Sage 50?

To start reconciling a bank account, ensure all the transactions add up to the end date of the statement.

Here are the steps:

Step 1: Add statement summary

Here are the steps to add Bank Accounts:

1. Press the option “Bank Accounts”.
2. Choose the right account and press the option, “Reconcile”.
3. Add the “Ending Balance” from the bank account.
4. Add the “Statement Date”.
5. Add any Interest Earned along with the related date.
6. Add any Amount Charges along with the related date.
7. Press the “OK” button.

In the Reconcile screen, press the “Edit” button to change the summary.

Step 2: Check the Last Reconciled Balance

Here are the steps to review the last reconciled balance:

1. In the “Matched Transaction” tab, locate the Last Reconciled Balance.
2. Match it against the bank statement’s opening balance.
   • In case both match, keep matching transactions.
   • In case they do not match, classify and rectify the irregularities prior to proceeding.

Step 3: Reconcile Transactions

To reconcile transactions, follow these steps:

1. In the section for “Unmatched Transactions”, choose the first transaction added to your bank statement.
2. Press the “Match” option to shift it to the “Matched Transaction” section.
3. Repeat the steps for all transactions.
4. To choose more than one entry, keep pressing the Ctrl key to change settings to allow multi-selection.
5. In case a transaction is present on the bank statement but unavailable in Sage 50, make an adjustment entry.
6. Press the “Save Progress” button to hold the process and resume later. 
7. Click “Use Saved” to resume a previously saved reconciliation.
8. Press the “Report” button to issue a list of items that are unmatched.

Step 4: Finalize Reconciliation

To finalize reconciliation, follow these steps:

1. Confirm that the “Statement Balance” and the “Matched Balance” are the same.
2. The Change should display zero.
   • If there is no difference, click the “Reconcile” button. Sage 50 marks the transactions and creates a PDF reconciliation report.
   • In case the difference is not zero, probe and rectify the issue prior to reconciling. Save the progress whenever you desire.
3. Press the option “Use Saved” to get back to your saved mission.

Step 5: View Reconciled Report (Optional)

To check the reconciled report, perform the following steps:

1. Press the “Bank Accounts” option.
2. Now choose the right account.
3. Press the “Reconcile” option.
4. Now click the “OK” option.
5. Press the “View History” option. A number of PDF reconciliation reports will be displayed. Every file has the bank account name along with the reconciliation date.
6. Click the required file twice to open it.

How to Reconcile Accounts Receivable to the General Ledger in Sage 50?

In Sage 50, implement this procedure to make sure the balances for General Ledger and Accounts Receivable match.

Step 1: Add statement summary

Here are the steps to add Bank Accounts:

1. Press the option “Bank Accounts”.
2. Choose the right account and press the option, “Reconcile”.
3. Add the “Ending Balance” from the bank account.
4. Add the “Statement Date”.
5. Add any Interest Earned along with the related date.
6. Add any Amount Charges along with the related date.
7. Press the “OK” button.

In the Reconcile screen, press the “Edit” button to change the summary.

Step 2: Check the Last Reconciled Balance

Here are the steps to review the last reconciled balance:

1. In the “Matched Transaction” tab, locate the Last Reconciled Balance.
2. Match it against the bank statement’s opening balance.
   • In case both match, keep matching transactions.
   • In case they do not match, classify and rectify the irregularities prior to proceeding.

Step 3: Reconcile Transactions

To reconcile transactions, follow these steps:

1. In the section for “Unmatched Transactions”, choose the first transaction added to your bank statement.
2. Press the “Match” option to shift it to the “Matched Transaction” section.
3. Repeat the steps for all transactions.
4. To choose more than one entry, keep pressing the Ctrl key to change settings to allow multi-selection.
5. In case a transaction is present on the bank statement but unavailable in Sage 50, make an adjustment entry.
6. Press the “Save Progress” button to hold the process and resume later. 
7. Click “Use Saved” to resume a previously saved reconciliation.
8. Press the “Report” button to issue a list of items that are unmatched.

Step 4: Finalize Reconciliation

To finalize reconciliation, follow these steps:

1. Confirm that the “Statement Balance” and the “Matched Balance” are the same.
2. The Change should display zero.
   • If there is no difference, click the “Reconcile” button. Sage 50 marks the transactions and creates a PDF reconciliation report.
   • In case the difference is not zero, probe and rectify the issue prior to reconciling. Save the progress whenever you desire.
3. Press the option “Use Saved” to get back to your saved mission.

Step 5: View Reconciled Report (Optional)

To check the reconciled report, perform the following steps:

1. Press the “Bank Accounts” option.
2. Now choose the right account.
3. Press the “Reconcile” option.
4. Now click the “OK” option.
5. Press the “View History” option. A number of PDF reconciliation reports will be displayed. Every file has the bank account name along with the reconciliation date.
6. Click the required file twice to open it.

How to Reconcile Accounts Receivable to the General Ledger in Sage 50?

In Sage 50, implement this procedure to make sure the balances for General Ledger and Accounts Receivable match.

Step 1: Record Entries and Verify Account Setup

Here are the steps to post entries and check account settings:

1. Access the option “Tasks”.
2. Now, click the option “Post Entries”. This will help to post all the transactions to both the General Ledger and Accounts Receivable.
3. Check the posting journal and look for any rejected entries.
4. Fix all the rejected entries prior to proceeding.

Now, check the General Ledger account settings for Accounts Receivable:

1. Head to the “File” menu.
2. Choose the option “Accounts Receivable”.
3. Press the option “Company Settings”. Now, click the option “GL Settings”.
4. Now, press the option “Balance Sheet Accounts or AR Settings”.
5. Verify and note the following details regarding the account:
   • Customer Cash Receipt Account.
   • Accounts Receivable Account.
   • Retainage Receivable Account.

Step 2: Generate the Accounts Receivable Aging Report

To issue the Accounts Receivable Aging Report, follow these steps:

1. Head to the “Reports” section in Accounts Receivable.
2. Choose the option, “Aging”. Now , click the option “Detail by Customer”.
3. Select the transaction file, Current AR.
4. Enter the month-end date as the Aging As of Date for reconciliation.
5. Choose “Accounting Date” as the Aging Basis.
6. Tick the box for “Include Retainage Column. 
7. Verify that the Accounts Receivable Account and Customer Cash Receipts Account are the same as the General Ledger.
8. Press the “Start” button to begin report printing.

In case the accounts fail to match, perform these steps:

1. Press the “Conditions” tab.
2. Include a condition: Account ≠ Customer Cash Receipt and Type ≠ Cash Receipt.
3. Press the “Start” button to issue the filtered report.

Step 3: Start the General Ledger Report

Here are the steps to run the General Ledger Report:

1. Head to the “Reports” menu.
2. Choose the option “Year-to-Date Ledger”.
3. Tick the box, “Modify Date Range”.
4. Set the Start Date to the first day of the reconciliation month. Perform reconciliation for each month individually.

For those who use account prefixes, perform these steps:

1. Press the option “Conditions”.
2. Include a condition: Base Account = Accounts Receivable Account.

For those who do not use account prefixes, perform these steps:

1. Directly include the complete Accounts Receivable Account number.
2. Press the “Start” button to issue the report.

Step 4: Check and Compare Reports

In case the Retainage Receivable Account and Accounts Receivable Account are the same, perform these steps:

1. Ensure the Year-to-Date Ledger’s Ending Balance equals the sum of the Amount and Retainage columns in the Aging Detail report.

In case the accounts are not similar, then match the Ending Balance separately for every account, with both reports. However, in case the balances fail to match, then print the report for last month, detect the difference, and determine the cause.

Also Read: Reset Bank Reconciliation in Sage 50

Final Words

Bank reconciliation makes sure that your bank statements and internal records match. It plays a key role in keeping financial data correct and identifying fraudulent activities. Sage 50 offers a robust and effective reconciliation feature to aid in bank reconciliation.

In this guide, complete information on reconcile bank account in Sage 50 has been shared. From the benefits to the processes of reconciliation is Safe 50, a step-by-step process has been declared. Please do not hesitate to contact us if you have any questions or concerns.

Our team of QuickBooks experts and professionals is adept at dealing with such issues. Call us at +1-800-964-3096.

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