Accounting

Reconciling your client’s bank accounts in Digits is essential for maintaining accurate financial records. This guide will walk you through the reconciliation process, troubleshooting tips, and important considerations.

Reconciliations Dashboard

The reconciliations dashboard provides an overview of the reconciliation history for each category. The period selector in the top navigation bar controls what reconciliation statistics are shown above the reconciliation timelines. Easily keep track of categories in the selected period with:

• No activity

• No reconciliations started

• Draft reconciliations

• Finalized reconciliations

Clicking on one of these reconciliation statistic tiles will filter to reconciliations matching that criteria.The categories list can be sorted by name, category number, subtype, and the date of their last reconciliation.

Each category row has a timeline of reconciliations. Hover over each indicator for more information about the reconciliation. If multiple reconciliations were performed for a given month, multiple dots will appear. You can hover over those to see a list of all reconciliations finalized within that month. 

• A finalized reconciliation is represented by a purple checkmark icon

• A draft reconciliation is represented by a pencil icon

• A reopened reconciliation is represented by a yellow exclamation mark. This can mean a user manually reopened a reconciliation or the system reopened the reconciliation. Digits will automatically reopen a reconciliation (and all subsequent ones) if we detect that the statement balance entered no longer matches the ledger balance for that reconciliation period. 

• An empty circle indicates that no reconciliation has been created for that month

If a month has no icon, that indicates that a reconciliation starts before and ends after the given month.

Creating a Reconciliation

1. Access the Reconciliations tab in your client’s Digits Dashboard to begin.

2. Creating a Reconciliation:
   1. Use the Start Reconciliation Button in the dashboard header for any category.

2. Click the Start Button on an individual category’s row.

3. Click the dots on the timeline to auto-populate the category and date.

3. Set Details: Enter the statement ending date and balance. Optionally add deposits and withdrawals or charges and payments if a liability category is selected.
   
   

First Reconciliation After Migration:

• Digits does not import reconciliation data from QBO. Upon initial use, you'll need to reconcile categories for all time prior to the current period.

• Choose to reconcile each month or create a single large reconciliation. Only QBO transactions are included if dated before the cutover date and will be marked as reconciled automatically.

Reconciling a Category

Once you’ve created a reconciliation, you will see a screen like the one below. Here, you will see all transactions from the date after the last reconciliation was finalized through the end date of the current reconciliation. You will also see any transactions that were marked as unsettled from prior reconciliations, regardless of their date.

Features Available:

1. Filters

2. Bulk action checkboxes

3. Count of reconciled and unsettled transactions

4. Create new manual transaction

5. Reconciled transactions checkbox

6. Unsettled transaction checkbox

Auto-Reconciled Transactions:

• QBO or Plaid Connection transactions are auto-reconciled.

• Manually created or CSV uploaded transactions require manual reconciliation.

Reconfiguring a Reconciliation

When you create a draft reconciliation, you are able to reconfigure it at a later time and adjust the date, balance, withdrawals, and/or deposits. Reconfiguring will bring up the same screen used to create the reconciliation, allowing you to update these values. 

Note: the date cannot be changed such that it would conflict with another existing reconciliation for that category.

Bulk Editing Transactions

When transactions are selected, you can bulk edit their party, related category, or reconciliation status. You can also see the sum of the selected transactions to quickly identify if your category will reconcile after the bulk action is performed.

Note: The party and related category cannot be edited if you have transactions from QBO selected.

If you require additional support or have any questions, please don't hesitate to reach out to us through our contact form. Our team is here to assist you with any concerns or further guidance you may need.