1. Lauren Bonilla Entech Rental Management Software Navigate 08: Charting Your Course for the Future Bank Reconciliation

2. Purpose of Session The number one reason to hold this session is to learn how to perform a Bank Reconciliation in Entech. You will also learn why it is important to Reconcile your bank accounts. Thirdly, you will learn the relationship between the bank reconciliation and the balance sheet. Understanding how to reconcile and why to reconcile is key to being able to properly manage your Escrow account through Entech.

3. Session Details Topics for this session: Reconciling Bank Deposits Processing Checks Recording Bank Adjustments Reconciling the Bank Statements

4. Part of the items that you will be reconciling is money that is deposited into your bank account. These deposits in Entech should match what has been deposited in real life. Deposits should be posted on a daily basis for cash, checks and credit card payments that you receive. To make a bank deposit go to Accounting, Escrow and Bank Deposits. Lets take a look… Bank Deposits

5. Part of the items that you will be reconciling is money that is deposited into your bank account. The deposit totals in Entech should match what has actually been deposited into your bank account. Deposits should be posted on a daily basis for the cash, checks and credit card payments that you receive. To make a bank deposit go to Accounting, Escrow and Bank Deposits. Lets take a look… Bank Deposits

6. First you will need to select the bank account.

7. Bank Deposits Then Select your dates and payment types.

8. Bank Deposits Click on the compute button to generate a list of transactions to be deposited.

9. Bank Deposits Mark the transactions that have been taken to the bank. Make sure that you mark the correct transactions.

10. Bank Deposits As the transactions are marked, you will see the total of the items calculate at the bottom of the screen.

11. Bank Deposits Click Update to save the items marked.

12. Bank Deposits The deposit needs to be posted to the checkbook. Click on t the Print/ Post button.

13. Bank Deposits The deposit record will be displayed. Print this and keep with Deposit Slip from the bank. The totals should match.

14. Bank Deposits Items that were selected for the deposit will be removed from the list. The remaining items should be included on the next deposit.

15. Bank Deposits This process should be repeated for Credit Card Deposits. Credit Card Deposit totals should match what is batched out through your credit card machine or gateway. You will reconcile these deposits when you get your bank statement. They should be recorded in Entech for the amounts that will clear the bank account.

16. Record Keeping Payment Reports to Print Daily: Bank Deposit Report - Printed when deposit is posted and should be kept with bank deposit slip or batch report. Sales Recap Report – Printed at the end of the day. Reports, Accounting, Audit Trails and Sales Recap. This report shows all of the money received for the day. Money Not Deposited – Should be printed once a day to track ALL money (regardless of date) that needs to be deposited into the checkbook. Accounting, Escrow, Audit Reports, Balance Sheet, and Money not Deposited (detail).

17. Processing Checks In order to reconcile the bank account in Entech, you should record ALL of the checks through Entech. There are 3 types of checks that are processed through Entech. Security Deposit Checks Owner Checks Vendor Checks Once the checks are printed and posted, they will be recorded in Entech to be reconciled. Checks should not be posted if they will not be cleared.

18. Processing Checks Security Deposit Checks: Accounting, Security Deposits and Process Refunds.

19. Processing Checks Security Deposit Checks: List of Refunds due will be computed. Process the checks that need to be sent back to the guest.

20. Processing Checks Security Deposit Checks: Print the checks that need to be refunded.

21. Processing Checks Security Deposit Checks: Post the checks that have been printed. Once posted, these checks will need to be reconciled.

22. Processing Checks Security Deposit Checks: Once the checks are posted, a report will print. This is how the checks are recorded in the Entech Checkbook.

23. Owner Checks: Accounting, Owners and Owner Checks. Processing Checks

24. Owner Checks: List of Owner checks due will be computed. Process the checks that need to be sent to the owners. Processing Checks

25. Owner Checks: Print the checks that need to be set to the owners. Processing Checks

26. Owner Checks: Post the checks that have been printed. Once posted, these checks will need to be reconciled. Processing Checks

27. Owner Checks: Once the checks are posted, a report will print. This is how the checks are recorded in the Entech Checkbook. Processing Checks

28. Vendor Checks: Accounting, Payables and Process Payables. Processing Checks

29. Vendor Checks: List of Vendor payables due will be computed. Process the checks that need to be sent to the vendors.

30. Vendor Checks: Print the checks that need to be set to the vendors. Processing Checks

31. Vendor Checks: Post the checks that have been printed. Once posted, these checks will need to be reconciled. Processing Checks

32. Vendor Checks: Once the checks are posted, a report will print. This is how the checks are recorded in the Entech Checkbook. Processing Checks

33. There are items that need to be entered in the Entech checkbook to be reconciled. Bank Fees Interest Earned These items will affect the bank balance that you reconcile to and need to be recorded in Entech. Bank Adjustments

34. Recording Bank Fees:Maintaining your Balance Sheet. Are you going to reduce your commission income to your management company? OR Are you going to transfer money back into Escrow from operating? Lets look at both methods… Bank Adjustments

35. Bank Fees – typically bank fees are fees calculated by the bank for credit card transactions processed. These fees will reduce the overall bank account balance. Need to be entered when reconciling the bank statement in order to balance Entech with the bank account balance. Lets take a look at how to record the bank fees… Accounting, Escrow, and Checkbooks. Bank Adjustments

36. Recording Bank Fees: Recording the Fee Bank Adjustments Do not create payable!

37. Recording Bank Fees: Transferring money from Operating. Bank Adjustments Do not create payable!

38. Recording Bank Fees: Recording Bank Fee and Reducing Commission. Bank Adjustments Create payable!

39. Interest Earned Bank Adjustments Interest Earned – typically interest is calculated by the bank and deposited into your account. Interest will increase the overall bank account balance. Need to be entered when reconciling the bank statement in order to balance Entech with the bank account balance. Lets take a look at how to record the Interest… Accounting, Escrow, and Checkbooks.

40. Recording Bank Fees :Maintaining your Balance Sheet. Are you going to increase your commission income to your management company? OR Are you going to transfer money back into Operating from Escrow? Lets look at both methods… Bank Adjustments

41. Recording Interest Earned: Recording the Interest Bank Adjustments Do not create payable!

42. Recording Interest Earned: Transferring money from Escrow. Bank Adjustments Do not create payable!

43. Recording Interest Earned: Recording Interest and increasing Commission. Bank Adjustments Create payable!

44. Reconciling the bank account in Entech is key to keeping the balance sheet in balance. The bank reconciliation should be completed each month when the bank statement is received. Lets take a look.. Bank Reconciliation

45. Reconciling the Bank Statement: Accounting, Escrow and Account Reconciliation. Bank Reconciliation

46. Reconciling the Bank Statement: Mark the items have cleared the bank account according to the bank statement. Bank Reconciliation

47. Reconciling the Bank Statement: Click on the reconcile button. Bank Reconciliation

48. Reconciling the Bank Statement: New report for Items marked can be printed and reviewed. Bank Reconciliation

49. Reconciling the Bank Statement: If something on the report is not correct, click close on this screen. Bank Reconciliation

50. Reconciling the Bank Statement: When you have marked all items that have cleared your bank account fill in the information correctly and click Begin. Bank Reconciliation

51. Reconciling the Bank Statement: Once the reconciliation is completed – Entech will notify you. Bank Reconciliation

52. Reconciling the Bank Statement: Once the reconciliation is completed, you will be able to print out the reconciliation report. Bank Reconciliation

53. Reconciling the Bank Statement: Once the reconciliation is completed, this portion shows checks not cleared. Bank Reconciliation

54. Reconciling the Bank Statement: Once the reconciliation is completed, this shows deposits that have not cleared. Bank Reconciliation

55. Reconciling the Bank Statement: Once the reconciliation is completed, you will be able to print out the reconciliation report. Bank Reconciliation

56. Reconciling the Bank Statement: Verify that the amount calculated for the Adjusted Bank Balance matches the total Liabilities category on the balance sheet. Bank Reconciliation

57. Reconciling the Bank Statement: Accounting, Escrow, Audit Reports and Balance Sheet. Bank Reconciliation

58. Reconciling the Bank Statement: Verify that the amount calculated for the Adjusted Bank Balance matches the total Liabilities category on the balance sheet. Bank Reconciliation 47,258.27

59. Reconciling the Bank Statement: When the figures match, select option A. If there is a difference, mark option B. Bank Reconciliation X

60. Reconciling the Bank Statement: In our example there is a shortage. Bank Reconciliation 14,234.68 Money in office to be deposited 10/1/08 Deposited money and will balance next month.

61. You should reconcile each month when you receive your bank statement. It is important that you maintain your Balance Sheet Summary – keeping it in balance You will be reconciling checks, deposits and bank adjustments. Summary

62. Bank Reconcilitaion Any questions?