Reconciling A Credit Card Account In Microsoft Money

Reconciling A Credit Card Account In Microsoft Money
To balance, or reconcile, an account in Money, you simply identify the credit card account you want to reconcile. Then you use Money's account reconciliation feature
to explain the difference between Money's balance and the credit card company's balance.
NOTE If you are taking advantage of Money's online banking features, you may be able to reconcile your credit card balance automatically. How you do this is described in Money's online help.
To reconcile a credit card account, take the following steps:
1. Display the credit card account you want to reconcile.
To display the register for the account you want to reconcile, click the account name listed in the Favorite Accounts area of the Money home page. If you don't see the
account listed, click the Accounts & Bills link and then select Account List to display a list of all your Money accounts. Then click the account you want.
2. Tell Money you want to balance the account.
Along the left edge of the Money window is a list of common tasks. When the Money window shows the account register for a credit card account, one of these tasks is Balance This Credit Card Account. By clicking this task link, you tell Money that you want to reconcile the account displayed in the window.
After you click the task link, Money displays the credit card reconciliation dialog box. (To label the dialog box, Money uses the name of the credit card account.)
3. Provide the statement date.
To begin the reconciliation process, enter the statement date in the Statement Date box. This date comes directly from your credit card statement.
4. Enter the starting balance.
Enter the beginning account balance from your credit card statement in the Starting Balance box. If you were reconciling a credit card account using the
January statement, for example, the starting balance might be the balance on January 1, or whatever the first day is of the statement month.
5. Enter the ending balance.
Enter the ending account balance from your credit card statement in the Ending Balance box. This is the credit card account balance on the last day of the statement.
If you were balancing an account using the January statement, for example, the ending balance might be the credit card account balance on January 31.
6. Enter the service charge.
To record a service charge, you need to enter two or three pieces of information.
First, enter the service charge amount from your credit card statement in the Service Charge box. Second, categorize the service charge using the Category box.
Money initially suggests you use its Service Charges category. But you can select or create some other spending category if you prefer. Money also supplies a Subcategory
box. Clicking the Category and Subcategory boxes' buttons displays a list of spending categories.
7. Enter the amount of interest charged.
To enter the amount of interest charged during the statement month, you again enter two or three pieces of information. First, enter the amount of interest charged in
the month in the Interest Charged box. Clicking the Interest Charged box's button displays a pop-up calculator. Second, categorize the interest charged by entering an expense category in the Category and, optionally, the Subcategory box. Clicking the Category and Subcategory boxes' buttons displays a list of categories or subcategories.
8. Identify the cleared transactions.
Click the Next button. Money then displays a special version of the account register window. You use this special account register to identify the cleared transactions for the credit card account.
9. Mark the cleared transactions.
Using the reconciliation version of the account register window, review each of the transactions that have cleared the credit card company. If you see a transaction in
the register that also appears-in other words, is cleared-on the credit card statement, mark it as cleared. To do this, find the column labeled with a "C"-the "C" stands for cleared-and click the box for that transaction. Money then puts a "C" in that box.
Repeat this step for each transaction that has been recorded by your credit card company.
10. Click the Next button to indicate that you are finished.
Along the left edge of the screen, Money provides information about the account you are balancing. Most important is the Difference amount reported about two thirds
of the way down this body of information. When your account balances, the difference should show as zero.
After you complete the reconciliation-in other words, once the Money records match the credit card company's records-click the Next button. When you do this,
assuming that your account balances, Money displays another dialog box telling you that you have successfully balanced your account. To conclude the reconciliation process, click the Finish button.
If you have trouble reconciling your account, note that the window used for marking cleared transactions also includes a Postpone button. If you click this button, you save
your partially completed reconciliation work. You can then come back to the work later
by reinitiating this process.
ACPA Stephen L. Nelson is the author of do it yourself kits for Incorporating in New Jersey, New Jersey S corporation, and New Jersey limited liability company. Trying to print a report or chart in Microsoft Money? Follow these simple steps, says CPA and computer book author Stephen L. Nelson.