It’s common to notice that the balance in your General Ledger (GL) doesn’t match the balance showing in your bank account. This difference usually happens because of timing or missing entries. Below are the most common causes and how you can review them.
Common Causes of Differences
1. Transactions appear in the bank but not in the system
Sometimes a transaction clears the bank but was never posted in the system. For example:
- Bank fees
- Direct deposits
- Returned items
2. Voucher payments posted in the system but not cleared by the bank
A payment may have been posted in the system, but the check hasn’t cleared or the ACH hasn’t yet processed through the bank.
How to Review the Differences
Check Missing Bank Transactions
- Go to Banking > Missing Bank Transactions.
- Review the list of items that are in the bank but not posted in the system.
- Add any missing transactions directly from this page.
Review the General Ledger Report
- Go to Reports > Accounting > General Ledger.
- Select the bank GL account.
- Compare the report to your bank statement.
- If any transactions are missing in the system, add them.
Summary
Differences between the GL and bank balance are usually caused by missing or uncleared transactions. By checking the Missing Bank Transactions page and reviewing the General Ledger Report, you can quickly identify and resolve the discrepancy.