This guide is written with MoneyWiz for Desktop in mind. Need one for Mobile? Click here!
What is reconciliation? What does it mean to reconcile a transaction? When you reconcile transactions, you double-check that the transactions you have in MoneyWiz match the ones you see on your bank. This can help you find accounting errors or fraud. This guide will teach you how to reconcile transactions.
There are two ways of reconciling your transactions.
Advanced reconcile (recommended)
This feature is available only in MoneyWiz for Desktop (Mac and Windows).
To enter Advanced reconcile, click on the scales button in the top-right:
Regardless of what view you were in, you'll be switched to Expert spreadsheet mode that features a special bar on top:
As for the fields you see:
- Opening date: in this field you set the start date of your bank statement.
- Closing date: this is where you should enter the end date of your bank statement.
- Opening balance: here you enter the starting balance of your statement.
- Closing balance: is the place for ending balance of your bank statement.
MoneyWiz will try to populate all those fields for you but you can change them at any time. For example, when you enter Reconcile mode MoneyWiz by default sets the Opening date as the date of the last reconciled transaction + 1 day, while the Closing date is 30 days later. This means that if the date of your last reconciled transaction in this account is January 5, MoneyWiz will automatically set the Opening date of reconciling as January 6 (a day after last reconciled transaction) and the Closing date as February 4 (30 days after the last reconciled transaction).
MoneyWiz also tries to identify the correct balances for opening and closing balance. If you are reconciling regularly, this should always be a match. If it's not, you should carefully check what is the reason for the difference.
Please also note that MoneyWiz will show unreconciled transactions from the previous statement periods as you may find it useful to make sure there are no missed transactions between the current and the previous statement.
At the bottom of the box, you have two check boxes that allow you to control the visibility of transactions of certain types. By default, MoneyWiz will display any transactions within the specified range (Opening date - Closing date) but you can control it here.
Now let's talk about the small progress bar and values around it:
- 0 reconciled: this means that no transactions have been reconciled so far. If I were to reconcile one transaction, this number would change to 1.
- 3 unreconciled: this is how many transactions remain unreconciled within the given period.
- 116,94 EUR left to reconcile: similar to above, this tells me how much money in general I still have to reconcile.
Clicking Done closes Advanced reconcile but it doesn't really save your changes - that's because changes are saved immediately, as you reconcile each transaction.
In order to reconcile, all you need to do is simply place a tick next to transactions that you were able to locate on your bank statement. You'll notice that as you do this, the values change:
I have 1 unreconciled transaction for 15 EUR and MoneyWiz tells me that there is 15 EUR in total left to reconcile. Looks like yet another seamless reconciling session!
It is possible however that at some point you'll see a red "n left to reconcile" label:
This means that there's a problem somewhere. You should begin by double-checking:
- Whether the Opening date is correct.
- Whether the Closing date is correct.
- Whether the Opening balance is correct.
- Whether the Closing balance is correct.
- If the above fails, try unreconciling all transactions and start again, carefully looking for possible problems within transactions themselves.
In this particular case, Opening balance was off by 0,01 EUR. Ah, silly me! Changing Opening balance back to 1 500,00 EUR fixed the problem. Naturally, it might be worth checking why the Opening balance was incorrect. In this case, I was entering it manually so I assume human error.
Please note that your reconciling Closing balance does not have to be equal to your current account balance. If your reconciling Closing date is today and you have no future transactions in the register then indeed those figures should be equal. But if you're reconciling older transactions month by month then remember that the Closing balance will be automatically set to account balance on the date of Closing date.
Once you're done with reconciling, just click on the "Done" button!
Regular reconcile method
We highly recommend using the Advanced Reconcile (Reconcile Assistant) in MoneyWiz for Desktop. However, you might prefer simpler method. To begin, switch to Expert view:
You should see a column with check boxes on the far left side. If not, try changing your column layout by right-clicking (or left-clicking while holding control key on your keyboard if you have right-click disabled) on the column headers and enabling Reconcile column.
To reconcile in this mode, simply put a tick next to transactions you see on your bank statement. There's no period to set and MoneyWiz won't verify the opening or closing statement balance for you.