Managing Bank Reconciliation

Bank reconciliation is a critical accounting process that ensures the transactions recorded in your accounting software (like Bullet) match the transactions that have actually cleared your bank account. In simple terms, it’s the process of matching the money flowing in and out of your business ledger with the money flowing in and out of your actual bank statement. This guarantees your cash balance is accurate and helps catch any errors or missed transactions.

Here is how you can perform bank reconciliation in Bullet:

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Step 1: Access the Reconciliation Tool

1. Go to the Accounts and Payroll section, usually located in the top-left corner of the software.
2. From the left-hand menu, click on Bank Accounts.
3. Select Overview from the drop-down menu.
4. Locate the bank account you wish to reconcile.
5. Under the bank account name, you will see a list of buttons (e.g., Import Transactions, Bullet Transactions). Click on Reconcile Account.

Step 2: Choose Money In or Money Out

On the reconciliation screen, you must first decide which side of your transactions you want to match:

• Money In: Reconcile funds received (like payments for invoices).
• Money Out: Reconcile funds spent (like payments for bills or other expenses).

Click on the appropriate section to view the matching screen.

Step 3: Match Transactions

The bank reconciliation screen is divided into two sections:

• Left Side (Bank Transactions): Shows transactions imported directly from your bank statement.
• Right Side (Bullet Transactions): Shows invoices, bills, and other transactions you have manually created and recorded in Bullet.

Your goal is to match each bank transaction on the left with a corresponding entry on the right.

Step 4: Create Missing Transactions on the Fly (If Necessary)

If you see a transaction on the left (from your bank) but haven’t recorded it on the right (in Bullet), you can create it instantly:

1. Under the Bullet Transactions section on the right, click the button that says “Not here? Create something.”
2. The system will offer workflow options. For money coming out, typical options include:
   • Bill
   • Credit Card Payment
   • Bank Transfer
   • Wage Payment
   • Tax Payment
   • Journal Entry
3. Example: Creating a Bill
   • Select the Bill option.
   • The creation workflow will appear with most fields pre-populated (date, supplier name, VAT rate, and amount) using the data from the bank transaction.
   • You only need to fill in the Category section (consult your accountant if unsure).
   • Click Review, then Save.

Step 5: Finalise and Reconcile

1. After creating the missing transaction (or if it was already there), you will be sent back to the reconciliation workflow. Your new entry will now appear on the right side.
2. Click the entries on both sides that match.
3. Click the Approve/Next button to reconcile the transaction.

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How to Verify the Reconciliation

To ensure the transaction was fully reconciled, you can check the transaction details:

1. Go to Money Out and then Overview.
2. Click on the name of the Bill you just created and reconciled.
3. Scroll to the very bottom. You will see a section titled “Payments You’ve Made.”
4. If a payment is listed here that links back to the bank transaction, the item is officially reconciled!