Reconciling your accounts helps make sure the transactions in FarmRaise Tracks match your bank statement. Custom Reconciliation lets you select a statement period, enter your bank balances, and review your transactions for anything that may be missing or incorrect.
Add a Bank Statement
Go to Accounts.
Scroll down and select the account you want to reconcile.
Click the Reconciled Bank Statements tab.
Click Add Statement.
Select the start and end dates from the bank statement you want to reconcile.
Enter the Beginning Balance and Ending Balance from your bank statement.
Click Save.
Your statement will now appear in the list. If it has not been reconciled yet, you will see that it is Not Reconciled.
Review Your Transactions
Click the unreconciled statement to begin reviewing it.
Go through the transactions for the statement period and compare them with your bank statement. Make sure all of your revenue, expenses, transfers, and other transactions are accounted for.
Review Your Reconciliation Summary
FarmRaise will calculate your reconciliation summary to help you identify discrepancies. This includes:
Expected Net Cash Flow
Unreconciled Revenue, such as "$200 of revenue has not been reconciled for July"
Unreconciled Expenses, such as "$215 of expenses are missing from your account"
Use this information to identify what may be missing or incorrect.
Resolve Any Discrepancies
If the Ending Balance is higher than expected, you may have missing revenue that needs to be added to FarmRaise Tracks.
If the Ending Balance is lower than expected, you may have missing expenses.
Compare your transactions with your bank statement and add or adjust transactions as needed until the balances and transactions match.
Be sure to check for:
Missing deposits or revenue
Missing expenses or vendor payments
Incorrect transaction amounts
Transfers that may not have been recorded
Transactions that may have been entered more than once
Check Transactions by Month
You can use the month selector to switch between months and review transactions for different periods.
If there are no transactions for the selected month, you will see the message:
"There's nothing to reconcile here."
Reconcile Historical Statements
You can also use Custom Reconciliation to review previous months.
For example, if you need to reconcile transactions from March 2024, navigate back to that period and follow the same process:
Enter the statement's beginning and ending balances.
Review the reconciliation summary.
Compare your transactions with your bank statement.
Add or update any missing or incorrect transactions.
Confirm that your balances match.
Repeat these steps for each historical statement you need to reconcile.
Finalize Your Reconciliation
Once your beginning and ending balances match your bank statement and all transactions are accounted for, FarmRaise will mark the month as Reconciled.
Tips for a Smooth Reconciliation
Have your bank statement handy. You'll use it to compare balances and transactions for the period you're reconciling.
Double-check vendor payments, deposits, and transfers. Make sure they're included and properly categorized.
Use transaction filters. Filters can help you quickly locate specific entries when you're tracking down a discrepancy.
Work one statement at a time. This can make it much easier to identify where a discrepancy occurred.
Why Reconcile Monthly?
Reconciling your accounts regularly helps you:
Keep your financial records accurate and audit-ready.
Find missing income or forgotten expenses.
Catch transaction errors before they become bigger bookkeeping headaches.
Maintain a reliable picture of your farm's cash flow.
Keep accurate financial records when preparing for loans, grants, taxes, or other financial decisions.
Reconciling monthly can also make the process much easier. It's generally faster to track down one month's missing transaction than to play financial detective six months later.
Need Help?
If you have questions about reconciliation or need help resolving a discrepancy, reach out to the FarmRaise Support Team. We're happy to help you get your books squared away.