Step-by-step guide
Banking and reconciliation
Maintain a daily reconciliation rhythm so cash positions are trustworthy and close cycles are faster.
How to do this in CashyNest
Use posted sales and expense transactions plus accounting reports to perform reconciliation checks and keep cash/ledger balances reliable.
Capture cash movement sources
Menu path: Sidebar > Sales > Payments and Sidebar > Expenses > Bills/Expense Entries
Route:/:organizationId/sales/payments, /:organizationId/expenses/bills, /:organizationId/expenses/claims
- Ensure customer collections are posted in Payments.
- Ensure vendor liabilities and expenses are posted in Bills/Expense Entries.
- Review for unapplied or duplicate postings before reconciliation.
Expected result: All major inflow/outflow events are represented in the system ledger.
Reconciliation adjustments
Menu path: Sidebar > Accounting > Transactions
Route:/:organizationId/accounting/transactions/new
- Post required adjustments with clear narration and reference.
- Avoid direct balancing via undocumented entries.
- Use maker-reviewer discipline before finalizing period totals.
Expected result: Differences are resolved with auditable accounting entries.
Reconciliation validation reports
Menu path: Sidebar > Reports > Reports Library
Route:/:organizationId/reports/general-ledger, /:organizationId/reports/trial-balance, /:organizationId/reports/cash-flow-summary
- Run General Ledger for cash/bank accounts and inspect movement.
- Validate overall integrity with Trial Balance.
- Review net cash behavior using Cash Flow Summary.
Expected result: Cash movement and ledger balances are internally consistent.
Outcome to achieve
- Keep bank balances synchronized with ledger balances every day.
- Resolve unmatched transactions quickly with clear ownership.
- Prevent suspense and clearing accounts from accumulating unresolved items.
Step-by-step setup
Connect and classify bank feeds
Map each bank account to the right ledger and define import rules for common descriptions.
- Validate opening balance and statement start date.
- Separate operating, payroll, and tax bank accounts.
- Configure matching rules with strict confidence thresholds.
Perform daily matching
Match payments, receipts, and transfers to existing transactions before creating new entries.
- Prioritize high-value unmatched entries first.
- Investigate duplicates and reverse incorrectly imported items.
- Tag unresolved entries with owner and due date.
Close reconciliation weekly
Complete statement-level reconciliation and document unresolved differences.
- Generate bank reconciliation summary report.
- Confirm suspense account is zero or has approved exception notes.
- Post prior-period audit corrections in the current open year instead of editing locked audited years.
- Sign off by preparer and reviewer.
Escalate persistent exceptions
Create workflow for disputes, failed payments, and unexpected charges.
- Raise exceptions older than seven days for review.
- Attach communication trail with bank or counterparty.
- Update root cause log for process improvements.
Best practices
- Reconcile daily for high-volume accounts and weekly for low-volume accounts.
- Use maker-checker controls for manual reconciliation entries.
- Maintain separate clearing accounts for card, gateway, and transfer flows.
Common mistakes to avoid
- Posting directly to bank account ledgers to force a match.
- Leaving old unmatched entries unresolved month after month.
- Combining multiple bank accounts under one ledger.
- Reopening a closed financial year for non-material corrections that should be current-year adjustments.
Reports to watch
- Bank Reconciliation Summary: verify statement and book agreement.
- Unmatched Transaction Aging: drive timely exception resolution.
- Cash Position Snapshot: support working capital decisions.