How To: Compare Bank and Nominal Balances

Table Of Contents

Introduction
Step 1: Review the Bank Account Transactions
Step 2: Review the Nominal Account Balance
Step 3: Capture the Reconciled Bank Totals
Step 4: Compare the Figures

Introduction

When carrying out a Year End or Period Close Down, you may need to confirm that a bank account balance matches the balance of its associated nominal account.
Using the Number Store, you can easily compare the totals from both areas and identify any differences before completing your period-end procedures.

Prerequisites

Before carrying out this check, ensure the bank account has been fully reconciled.
If unreconciled transactions remain, the figures may not match and the comparison may not provide an accurate result.

Compare the Balances

  1. Open an Accounts screen (show me how).
  2. Open the following screens in separate Khaos Control windows:

Step 1: Review the Bank Account Transactions

  1. In the [ Bank Accounts ] screen:
    • Tick Show All.
    • Set the required From and To dates using the date filters on the right-hand side of the screen.
    • Enable the date filter.
    • Click Go.

Step 2: Review the Nominal Account Balance

  1. In the [ Trial Balance ] screen:
    • Enter the same From and To dates used for the bank account.
    • Enable the date filter.
  2. Highlight the nominal account linked to the bank account.
  3. Double-click the total shown in either the Debit or Credit column, as appropriate.
  4. When the Number Store window opens, click New Page to add the balance to the Number Store grid.
  5. Click OK.

Step 3: Capture the Reconciled Bank Totals

  1. Return to the [ Bank Accounts ] screen.
  2. Sort the grid by the Recon column.
  3. Click the Recon tick box on the first reconciled transaction.
  4. Press Ctrl + Shift + R to select all reconciled transactions within the current date range.
  5. Double-click the totals in the Debit and Credit columns and add them to the Number Store, using the same method as before.

Step 4: Compare the Figures

  1. Review the figures stored in the Number Store.
  2. Compare:
  • The nominal account balance saved from the Trial Balance.
  • The reconciled debit and credit totals from the bank account.
Any difference between the bank account totals and the nominal account balance can then be investigated before completing the period or year-end close down.

Understanding the Results

The comparison helps verify that:
  • The bank account has been reconciled correctly.
  • The associated nominal account reflects the same balance.
  • No unexpected journals or postings have affected the bank nominal.
  • Your accounts are ready for period-end or year-end processing.
If the balances do not agree, review the transactions included in the selected date range and check for missing reconciliations or incorrect nominal postings.

Tips

  • Add descriptions to entries saved in the Number Store to make them easier to identify.
  • Use consistent date ranges in both the Bank Accounts and Trial Balance screens.
  • The Number Store grid can be printed or exported if you need a record of the comparison.
  • Complete the reconciliation process before attempting to compare balances.

See Also


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