Reconciling a Credit Card Account

contributed principally by Barbara Needham

Step by Step basic instructions for reconciling credit card account.

First, get everything in your register that is on your credit card statement. You can do this in several ways:

Entering the amount and name of the thing you buy in your credit card register when you buy it. It really is easier to categorize this way. However, I'm not very good at doing this.

Copying the item list off of your credit card statement.

Lumping everything in one category such as "clothing" and putting in the total amount.

Downloading your credit card statement and letting Moneydance enter everything in your credit card register. If stuff is already in there, it will match it; if nothing is in there it will just add it.

Now that you have all the stuff in there, including any finance charges, you can reconcile.

Two Ways:

If your credit card statement is not too long or complicated, you can just go down the list and put a green check mark on everything that is on your statement. The amount in the balance column when you are done should be the balance on your statement. This works if there are no skipped items in between the checked items.

To use the Action/Reconcile; First find the top action button and choose "Reconcile."

Your credit card statement will have an amount on it that says "previous balance." This is the same as the previous balance that should be in the box that comes up when you choose reconcile.

Current balance which will be zero when the box comes up, you need to enter from your credit card statement. This will be a POSITIVE number on your credit card statement because WE owe THEM but you should enter a NEGATIVE number in the space that asks for your current balance. Unless you have a credit balance, showing with a minus sign in front of it on your credit card statement, then you enter a positive number.

When you choose OK then this pop up will disappear and a box will come up that shows charges on one side and payments on the other side. You tap on each item that is on your statement, this will put a diamond by each one. Watch the bottom "difference". When all the items on your statement are checked off, this should be 0. If not, you may have to "edit" or add a "new" transaction. When the difference is zero, you are done, and can check "done."

This will change all the diamonds to checks and you are ready to SAVE your file and go on to the next thing.

See also: Reconciliation