An out of balance happens if your bank account transactions don't match the transactions in the corresponding AccountRight account. They're caused by:

• data entry errors

• duplicated transactions

• missing transactions

• deleted or changed transactions.

Every out of balance is different, but they're all fixed the same way.

First, work out if the issue is in the current reconciliation or a previous one. This narrows things down so you can pinpoint exactly what's causing the out of balance – then fix it.

For step-by-step details, see Fixing out of balance reconciliations.

You reconcile your bank accounts to make sure your bank and credit card transactions are correctly recorded in AccountRight. If your bank's records don't match what's in AccountRight, your reconciliation will be out of balance.

You'll typically reconcile at a set frequency, and the more often you do it the easier it is to find any issues.

When you started using AccountRight, if there were uncleared deposits and withdrawals (which hadn't yet appeared on your bank statement) you'll need to record these manually. Find out how to do an initial bank reconciliation.

If you connect your bank accounts to AccountRight, your bank transactions are automatically imported into AccountRight, which makes reconciliation a breeze.

More about reconciling your bank accounts.

If you have a petty cash system in your business for small purchases like stationary or milk, you should manage this in AccountRight like any other bank account. This means you'll:

• record money deposited into the petty cash account using a receive money transaction

• record petty cash purchases using a spend money transaction, and

• record petty cash top-ups using a transfer money transaction.

You should also get a receipt each time you spend petty cash. This lets you reconcile the purchases against the receipts. It also helps you work out how much petty cash you've spent, so you'll know how much to top it up.

More about petty cash