Bank Reconciliation in REI Hub

Reconciliation is an optional accounting process that enables you to compare your actual, real world bank balances with the balances in REI Hub. Reconciliation assists in identifying any discrepancies and confirming that your records are complete, accurate, and reliable. Many real estate investors reconcile their accounts on a monthly basis, but any time period can be selected.

Some key takeaways from this article:

Reconciliation lets you confirm that your real-world bank balances align with the balances in your accounting software
Only reconcile an account after you have booked all transactions in the time period and think everything is accurate. Accounts with unbooked or ignored transactions typically cannot be successfully reconciled.
Reconciliation only looks at account balances; it does not help identify incorrectly categorized transactions (e.g., a Loan Payment inadvertently booked as an Expense)

If desired after reconciling all your accounts through a given date, you can optionally choose to set or update the 'Bookkeeping Close Date' field in the Portfolio Settings page. This will block journal entries (transactions) from being made prior to the selected date. This feature is designed to help prevent accidental or inadvertent changes after you have completed your bookkeeping for a time period. Setting a bookkeeping close date is not a requirement and has no impact on your reporting.

To perform a reconciliation in REI Hub:

1) Prior to running the reconciliation:

Determine the bank account or credit card and date range you wish to reconcile
Ensure that all transactions have been booked (and not Ignored) for that account and date range
Pull a bank statement for the desired time period showing starting balance, ending balance, and transactions
Optionally export the account register from REI Hub if you want to be able to view it in Excel or print it out to directly compare to the bank statement

2) From the Banking page, click on the 'View account register' link of the account you want to reconcile

3) Click on Reconcile Account

Find the Reconcile Account button in the Quicklinks box

4) Enter the statement Start Date and End Date

5) Enter the Statement Starting Balance

If the Statement Starting Balance matches the balance in REI Hub, you will immediately go to the next step and be asked to enter the Statement Closing Balance.

If the Statement Starting Balance does NOT match the balance in REI Hub, the system will notify you and present the Statement Starting Balance and the total balance in REI Hub. In order to address the discrepancy, you may need to exit the current reconciliation process so that you can reconcile at an earlier time or look further into the computed balance in REI Hub.

Optionally, you can automatically add an adjusting journal entry so that the balance in REI Hub matches the Statement Starting Balance. You can also choose to proceed with the current reconciliation without addressing the balance discrepancy.

While these options are available, the best practice is to fix the discrepancy before reconciling.

7) Enter the statement Ending Balance

8) View the Balance Summary and choose which transactions to mark as reconciled.

By default, all transactions in the statement period and earlier are included and checked to be reconciled. Unchecking a transaction will impact the Reconciled/ REI Hub balance. If a transaction is unchecked, it will not be considered reconciled at this time, but it will be included in the next reconciliation.

When the balances match, or you have included or excluded transactions to your satisfaction, click Save and Finish. This will complete the reconciliation process.