100530 Bookkeeping – Weekly Reconciliation – Webcom Solutions

Webcom Solutions is a IT business owned by  Luke Axton

Staff Members using the Bookkeeper login to Xero do not have access to the books@seamless email account. Therefore any returned queries will not be updated.

If you do have access to the books email:
Please update the xero file and action any returned queries or further emails from the client

First step is to process all items in the client's Dext file

Click on the Dext icon form the User Portal (still called Receipt Bank in the User Portal)

Select Webcom Solutions

Under the Costs menu select Inbox.

This is where all the Invoices will be sitting and ready to be processed.

Click on the link  "Supplier". This will sort and group the uploaded bills and receipts by Supplier Name.

Select the first invoice on the list by clicking on the name. In this example it is ACL Cranes.  You can select anywhere on this line item to enter into the bill. 

You a ready to process the first bill/receipt. We need to check all items from the bill/receipt has been extracted correctly and update accordingly. 

Item Details

Ensure you fill and check the following:

1. TYPE - This will either be "Invoice", "Receipt" or "Credit Note". Make sure the correct type is selected according to the document uploaded.

2. DATE: - Check Dext has picked up the correct invoice/receipt issue date

3. SUPPLIER:  Check Dext has picked up the correct supplier or hasn't duplicated the same supplier. There should be a warning if a new supplier is being created. 

4. INVOICE NUMBER: If you have selected Invoice or Credit Note as the type in step 1: You will need to make sure the correct invoice number has been extracted. If you have selected Receipt as the type > this field will disappear. 

5. DUE DATE: Check Dext has picked up the due date or payment terms correctly. If not listed either query the invoice or have due date same as invoice date.  (PLEASE CHECK THIS DEXT MORE OFTEN THEN NOTE GETS THIS WRONG). If you have selected Receipt as the type > this field will disappear.

6. CATEGORY: Dext will pre allocate a category it thinks this item should be allocated. We need to have a look at the invoice description and work out where this should be allocated on the chart of accounts.  If you are uncertain its always good to check how this may have been allocated in the past in the Xero file. If in doubt don't publish and ask the question.

7. CUSTOMER: This is used if you would like to allocate the invoice/receipt to a customer and want to make is a billable expense. This client DOESNT USE THIS.

8. MARK AS REBILLABLE: As the client does not use customer this is not applicable. 

9. JOB/TRACKING: If client does not allocate to tracking category

10. DESCRIPTION: A description is to be listed each time. This is a brief summary of what has been purchased - refer to invoice and summarise in the description field. 

AMOUNT

Check the amounts extracted and update accordingly. 

1. CURRENCY: Most invoices will be "AUD - Australia, Dollars".  If the invoice is not in AUD, change the currency and Dext will pre calculate the AUD amount to publish across to Xero. ** When reconciling the bank account in Xero, more often then not the amount taken out of the bank may be different to the calculated AUD amount determined by Dext, you will need to update the bill in Xero to reflect the correct amount taken out of the bank account.   

2. TOTAL AMOUNT: Check Dext has picked up the correct amount on invoice.

3. TAX: Check that the correct Tax category has been selected. i.e. GST on expenses, GST free, BAS excluded. 

4. TAX AMOUNT: Check the GST that has been extracted is correct or needs to be updated. 

5. NET AMOUNT: This is automatically calculated by the system

PAYMENT

1. Processing unpaid bills i.e. invoices

1. PAID: By selecting Yes or No this will determine how this is published across to Xero. When a bill is Unpaid the Paid option needs to stay as No.

2. PAYMENT METHOD: Leave this as blank as the bill is unpaid.

3. PUBLISH TO: We want this to go to do Xero as a Purchase. Therefore select Purchase.

4. PUBLISH AS:  There are three options: Draft, Awaiting Approval, Awaiting Payment, Paid.

We want to publish this into Xero as Awaiting Payment so it appears in the "Bills to Pay" section for client. 

When a bill is paid and auto-match appears

Bank Match is an automated feature that identifies Dext Prepare items that already have a matching transaction in your accounting software Bank Feed or cash coded payments.

Click 'Autofill Payment' to complete the Payment details for this item. The data is pulled through from Xero.

1. Publish your item. You can find it in the 'Reconcile' screen in Xero.

When a bill is paid and no auto-match appears

Some times a bill has been paid but Dext has not recognised it as a auto-match. To publish this as a closed bill ready for reconciliation the following needs to be completed.

1. PAID: By selecting Yes or No this will determine how this is published across to Xero. As this bill has been paid we need to select the YES option.

2. PAYMENT METHOD: We need to select which bank account/credit card within Xero the payment has been made from. If a item has been paid via cash or personally we need to close this off to the Director Loan/Drawings account. 

3. PUBLISH TO: We want this to go to do Xero as a Purchase. Therefore select Purchase.

4. PUBLISH AS:  When need to publish this as paid. 

By selecting the above, this receipt should appear ready for reconciliation within the reconcile screen. 

LINE ITEMS

Sometimes bill need to be split out as the charges relate to separate expense line items. 

If a invoice needs to be split between expense categories you would use this section.  If a bill does not need to be split disregard this step. 

Select Create line items > Add new line item > Fill in each line per above categories descriptions.  > Done

ONCE YOUR HAPPY WITH EVERYTHING SELECT "PUBLISH"

RECOCCURING RECEIPTS/INVOICES - DEXT SUPPLIER RULES

For Bills that clients uploads on a regular basis we create supplier rules for. This is to ensure the bills are pre-populated and there is consistency in the allocation of items. To create a supplier rule within Dext refer to Zendesk article. 

First check if you can find out the category looking at previously coded transactions following this process:

https://seamlessbookkeeping.zendesk.com/hc/en-us/articles/4407475830425-How-to-Search-for-a-Previously-Coded-Transaction

If you still cant process the item, please follow below steps

With any items left in Dext please:

1. Flag the item

2. In the description section initial, make a comment in Dext why it is left there and the date and initials

3. For any statements - check that statements are correct > if not request relevant invoices. - make a note in the description of what invoices are requested.  Once received initial, date and make a comment stating it matches checked then archive. 

4. Any bank statements - initial, date and make a comment stating it matches - If it doesn't match we need to investigate what items on the bank statement have not imported correctly.  

From your Ready Secure and click on "Xero - Seamless Bookkeeping - Bookkeeper"

You will enter the dashboard of the last worked on Xero file, in top left hand corner select the arrow and select My Xero.

Select Webcom Solutions

You will appear on the client Xero Dashboard

Reconcile bank that appear on the dashboard

• NAB Business Everyday Account

• Steedman Nab Account

To begin reconciling the first account select the blue "Reconcile" Box

The most common forms of deposits are:

- Sales

- Funds Contributed

- Interest Income

- Credit notes refunded

These can be reconciled in the following manner:

- Via Bank Rule

- Via Cash Coding

- Against Sales Invoice/s - Either singly or via remittance advice supplied

- Manually Reconcile - Manual Coding

Coding Via Bank Rule

When clients have regular sales > ie. cash register/website linked sales you will see them come through the bank feed as daily deposits.  i.e afterpay sales, shopify sales, direct deposits.

A rule is set up to reconcile the payments. We need to check the correct bank rule has been set up and if satisfied select ok. 

The example below shows a rule set up for shopify sales, and after. You can select "OK". If you want to see the details of the rule select " View Details". If you are happy with the allocated Select > Save Transaction > Reconcile

If you don't want to apply the bank rule as it been incorrectly picked up. Then select "Don't Apply Rule" and allocate via match screen or manually coding. 

How to Allocate against Single Sale Invoices

If a deposit matches to the correct invoice number you just need to check it has suggested the correct invoice and then select ok.  

In the example below the reference states INV002 and the suggested invoice is INV0025 therefore you would select OK on this transaction.

Matching deposits relating to Multiple Invoice Payments

If the deposit is made up of multiple invoices paid you will need to select "Find & Match" > Select Invoices > Reconcile

You will only be able to click "Reconcile" if the invoices "ticked" match the total amount paid. Usually for multiple payments a remittance advice is supplied so we can match the invoices up. If you cannot match you would request a remittance advice from client. 

Search customer name and select the corresponding invoices that relate to the payment. Then Select Reconcile

Partial Payment of an Sales Invoice - Invoice Split

Sometimes clients may part pay a invoice. i.e. pay via instalments. This means that we need to split a invoice and recognise a partial payment.

Manually Reconcile Remaining Deposits

You would use manual reconcile for all other items that cannot be matched per the above steps:

Who: This is who is making the payment

What: Which chart of account would you like this to be allocated. 

Why: Description on deposit

Tax Rate: Check to make sure the tax rate is correct. 

The types of withdrawals you will see are:

- Bill Payments

- Transfers between accounts

- Direct Debits (Generally Bank Ruled)

- Bank/Interest Fees (Bank Rules)

- Drawings (Bank Rule)

- Superannuation

- ATO payments

- Miscellaneous

How to reconcile a payment against a bill/receipt

For the withdrawals, first reconcile all the receipts and bills in Xero that have a suggested match and appear as green. Check the description from the bank feed on the left to the suggested match on the right. If you are happy they match Select Ok on each withdrawal. We are looking for supplier names to match, dates, totals and invoice numbers. 

For the remaining withdrawals:

• These are either multiple bills paid
• Transfers between business accounts 
• Have a bank rule associated with them
• Wages/Superannuation
• Need to be queried. 

How to reconcile multiple bill payments

If the withdrawal is made up of multiple invoices paid you will need to select "Find & Match" > Select Invoices > Reconcile

You will only be able to click "Reconcile" if the invoices "ticked" match the total amount paid. Usually for multiple payments a remittance advice is supplied so we can match the invoices up. If you cannot match you would request a remittance advice from client. 

Search supplier name and select the corresponding invoices that relate to the payment. Then Select Reconcile

How to Reconcile a Bank Transfer

For transfers between bank accounts you can either manually reconcile the transfer or you can create a transfer rule.

Below you will find instructions below on how to complete both.

Manually reconcile transfer between two accounts

1. On the bank reconciliation screen, next to the bank statement line you want to reconcile, click the Transfer tab
2. Select the bank account
   1. If the statement line shows the withdrawal, select the bank account or credit card you transferred the money to.
   2. If the statement line shows the deposit, select the bank account you transferred the money from
3. Select Ok

Reconcile transfer between two accounts via bank rule

Please refer to Zendesk for instructions on how to create transfer rule. 

How to reconcile bank rules

For Reoccurring transactions that run through any bank/credit card account a bank rule is created. 

To reconcile all transactions that match to a bank rule at the same time, click on "Reconcile" on the dashboard and then "Cash Coding".

The transactions that appear in "Cash Coding" will either have a rule, or appear because they do not have a potential match for a "Purchase" or "Sale" already entered in Xero. 

Review that you are happy with the rule and the allocation.

To reconcile these, click "Save & Reconcile All" and then click "Okay".

If there are no rules that match, when you click "Save & Reconcile All", a message will appear notifying you that there are no transactions to reconcile.  Click "Okay" and go back to the main "Reconcile" screen to continue.

If you need to create a rule please refer to Zendesk article. 

How to Reconcile Wage Payments

Wages can be reconcile wages in two wages depending on how the client makes there wage payments.

• ABA File: If the wages are paid via a ABA file, the description that comes through the bank line will be generic and not have any reference to wages. If this is the case you will need to reconcile wage payments manually and check payrun to obtain the wage figure. Refer video below.

• Direct Transfer: If the wages are manually paid by the client, the client will enter some sort of description when they complete the transfer. Based on this description and if they use the same description each time we could potentially create a bank rule for this.

If a bank rule can be created please review to steps on how to create a bank rule and allocate wages to the below account code "Wages Payable - Payroll ". 

How to Reconcile Superannuation Payments

To reconcile a Superannuation payment:

1. "Who": Please enter either Superannuation if it is paid in batch payment, if this is paid individually to superfund, please enter the superannuation fund name.
2. In the "What" field, choose the account "Superannuation Payable (or Liability)", with the account code beginning with an "8"
3. Why: Please write a explanation of what this payment is for. I.e Superannuation payment Q1
4. Click "Ok" to reconcile transaction

Again if the superannuation payments has the same description each time it is paid then a rule can be created for this.

How to Reconcile ATO payments

Generally ATO Payments are coded against the bill raised in system by us, ATO integrated client account or per the BAS. i.e. split between GST and PAYG Withholding. Follows steps above if needs to be coded to bill or via manually reconciliation. 

How to manually reconcile items

You would use manual reconcile for all other items that cannot be matched per the above steps:

Who: This is who is making the payment

What: Which chart of account would you like this to be allocated. 

Why: Description on deposit

Tax Rate: Check to make sure the tax rate is correct. 

Select OK once you are happy

Add queries to the "Discuss" tab on the reconciliation.  eg. "Receipt required", or "What is this payment for?" etc to prompt the client for information. Click Save. Repeat for all items un-reconciled.

When all transactions have been matched, check that the "Balance in Xero" and "Statement Balance" are the same.  To do this, from the dashboard in Xero, go to:

• Accounting > Reports
• Bank Reconciliation Summary
• Choose bank account
• Check that the only two lines that appear are "Balance in Xero" and "Statement Balance"
• Check that the amounts for these two lines are exactly the same
• If they match, the accounts are correct.

If there are more than two lines in this section and the "Statement Balance" and "Balance in Xero" are different, go to the "Troubleshoot" Process to find and amend the issue. 

If the pending balances are those you are waiting on further information for from the client, then this is OK - however if there are other transactions listed, or the balance has a different "imported balance" then please escalate this to team leader.

Create the queries report and email that along with weekly report and any further queries on the file for review

Select Uncoded Statement Lines

Make sure the date range covers the period of outstanding statement lines. Run.

Save the file as <Client> - Bookkeeping Queries - <Date> to the relevant client folder in sharepoint. 

Attach this document to the email to Team leader for review

If you have left any items in Dext or are unsure on any allocations in Xero, please send and email as per the below example for the team to look at when reviewing the file. For general queries (eg, please upload invoice/receipt) please just leave for Geelong team to review in Xero. 

To [email protected]

Subject: Webcom Solutions- Bookkeeping Queries - W.E XX/XX/XX

    Body Hi Team,

              I have completed the bookkeeping for Webcom Solutions. 
              Attached are the bookkeeping queries and Weekly Report. 
             
            I have the following items for further review:

              1. Receipt from 7-Eleven in Dext - I am unsure what category to                  put this too
              2. There was a transfer from A Milne, but I cannot see what this                  is for

              If you have any questions, please contact me

                       Test Send

The review is to be completed by a member of the Geelong office prior to sending to the client.

Staff Member will email when they finish the file if they have any issues on how to reconcile some items or process through Dext. See if you can action these or note for the queries email to be sent for the client. 

Open Dext and go to the Archive Tab

Pending on the client, you may want to go to the settings icon and select other items to show in this view to avoid you clicking in and out. eg Customers/Jobs/Trucking routes. You will always need Category so you can see where the item has been coded. 

1. Run your eyes over each transaction for the week to make sure all items have been allocated to the correct accounts - fix any that need correcting and note to advise Staff Member for future allocations. Fix them in both Xero and Dext so all reference points have the correct information. Also update any rules in Dext if needed to avoid wrong allocation in future. 

2. Check that all items have jobs/trucking routes if required

3. Check all items have descriptions.

4. Draft an email back to Staff Member with any feedback but do not send until all checks are done in case there is anything further to be mentioned

Go into Xero and drill into each bank account. If you know how to allocate the payment, then do so and advise Staff Member what is needed next time.

If you can create a rule for something that we don't get an invoice/receipt for, please do so, to avoid repeating queries. 

Otherwise ensure all the wording in the Discuss field is correct ready for the queries report to be generated. 

Open an Aged Payables Report

Review the items to ensure any receipts aren't listed here for payment

examples are fuel, post office, supermarket purchases. If they have been paid, they need to be against an account or could be a duplicate. Action as required. If the receipt has been paid but the item has not yet come through the bank - if you know the bank account it was paid from, then manually pay it so it doesn't show on this report for the client. (Instructions below)

To manually pay :

Open the bill and go to make a payment. Select the date paid, and the bank account. Add Payment. 

Once reviewed, create the queries report (if needed) and email that along with weekly report and any further queries to the client. 

Select Uncoded Statement Lines

Make sure the date range covers the period of outstanding statement lines. Run.

Save the file as <Client> - Bookkeeping Queries - <Date> to the relevant client folder in sharepoint. 

Email to client along Weekly Report and any extra questions. 

           To   —

  Subject   Lush Aesthetics - Bookkeeping Queries - W.E XX/XX/XX 

  Body       Dear Jaimie,

                  I hope you are well.

Please find attached this weeks bookkeeping queries .

If you have any questions, please feel free to contact us.

                  Test Send