Reconciling your operating account helps ensure that your records match your bank statement. This process confirms that all income and expenses are properly recorded, making sure your business account is accurate and up to date. Regular reconciliations are a good habit for tracking your firm’s financial health and catching any mistakes or unexpected charges.
Keeping your operating account balanced helps avoid overdraft fees, missed transactions, and other bookkeeping issues. It also supports better budgeting and decision-making for your practice.
Before you start, make sure of the following:
All payments and expenses for the period have been entered in PracticePanther.
You have your most recent operating bank account statement on hand.
To complete your monthly operating account reconciliation, follow the steps below:
In the Navigation Pane, click on Accounting > Account Ledger.
Select the appropriate Operating Account from the dropdown list of accounts.
From the account ledger for the selected bank account choose Create Reconciliation.
Type in the Ending Date and Ending Balance exactly as shown on your bank statement.
Note: Any transactions dated after the Ending Date will not appear in this reconciliation.
Match your transactions - go through your bank statement and check off each matching transaction listed in PracticePanther.
Use the checkbox beside each transaction to mark it as cleared.
You can click on transactions in blue to view the specific payment details in a new browser tab.
The Difference on the reconciliation must be $0.00 in order to Save and Finalize the reconciliation.
Once it reaches $0.00, the bar turns green and says "Ready to Reconcile."
When the difference is $0.00, your operating account is fully reconciled with your bank statement.
If the difference is not $0.00, the status bar will display "Not Ready to Reconcile." and you will be required to further investigate any discrepancies.
Review your entries for missing or duplicate transactions.
Click Save & Finalize to complete the reconciliation.
This button will not be enabled until your difference is $0.00.
You can also click Save for Later to save your progress and come back later to complete the reconciliation.
What Happens Next!
Your bank account is now reconciled! Print your reconciliation report for future reference.
Perform a Credit Card Reconciliation
Reconciling your credit card account each month ensures that your records match your credit card statements. This process helps you verify that all transactions are accurately recorded and that there are no discrepancies between your records and the credit card company's records. Regular reconciliations are essential for maintaining accurate financial records and for promptly identifying any unauthorized or erroneous charges.
Before starting the reconciliation process, please confirm the following:
Ensure you have the latest credit card statement available, either in digital or paper format.
All credit card transactions for the month should be entered in PracticePanther.
Your credit card account should be set up correctly in your Chart of Accounts.
To complete your monthly credit card account reconciliation, follow the steps below:
In the Navigation Pane, click on Accounting > Account Ledger.
Select the appropriate Credit Card Account from the drop down list of accounts.
From the account ledger of the selected credit card account, choose Create Reconciliation.
Enter the statement's ending date and the ending balance as shown on your credit card statement.
Match your transactions - compare the transactions listed in PracticePanther with those on your credit card statement.
Use the checkbox beside each transaction to mark it as cleared.
You can click on transactions in blue to view the specific payment details in a new browser tab.
If there are transactions on the statement not recorded in PracticePanther, enter them accordingly.
For any transactions in PracticePanther not appearing on the statement, verify their accuracy and make necessary corrections.
Once all transactions are matched and any discrepancies resolved, confirm that the difference between PracticePanther and the credit card statement is $0.00: The difference must be $0.00 in order to Save and Finalize the reconciliation.
Once it reaches $0.00, the bar turns green and says "Ready to Reconcile."
When the difference is $0.00, your credit card account is fully reconciled with your credit card statement.
If the difference is not $0.00, the status bar will display "Not Ready to Reconcile." and you will be required to further investigate any discrepancies.
Review your entries for missing or duplicate transactions.
Click Save & Finalize to complete the reconciliation.
This button will not be enabled until your difference is $0.00.
You can also click Save for Later to save your progress and come back later to complete the reconciliation.
What Happens Next!
Your credit card account is now reconciled! Print your reconciliation report for future reference.