Reconciliation is the process of making sure that records for several related accounts agree with each other balances.
The reconciliation process should be conducted daily in order to make sure the balances are correct between:
| Source balance | Destination balance | Description |
|---|---|---|
| Bank accounts at your custodian | Bank (Custody accounts) accounts in the system | The Settled balance in the bank account statements should be in balance with what the Bank accounts in the system says. The balances and the transactions of the bank accounts in the system can be viewed by looking at Bank accounts and expanding each account.
At the top right corner we can select which balance date and which currency we would like to see.
In the Total View on the first line we should enter the settled balance from the bank account statement and then click save, the background color of the row will change in order to indicate if the balance agrees or not.
|
| Bank accounts in the system | BFS-accounts in the system | The bank accounts are part of the general ledger and the BFS-accounts are a subledger to the bank accounts. The total aggregated amount of cash in the BFS-accounts should be equal to the bank accounts. The check in the row above makes sure that the bank accounts in the system and the bank accounts in the real world match. This check makes sure that the balance of the BFS-accounts equals the balance of the system custody accounts. |
| BFS Borrower Cash Account | Borrower transaction accounts in Lendysoft Back End | In BFS there is one account that reflects the total balance of the cash sitting in the transaction accounts of the borrowers. This means that the borrower transaction accounts in Lendysoft Back End is the subledger to the BFS Borrower Cash Account. This check makes sure that the balance is the same. |
| Borrower loans | BFS Lender loan positions | In BFS all the Lenders has shares of the outstanding loans. This check looks at the total value of outstanding borrower loans in Lendysoft Back End and compares this balance to the aggregated shares kept by lenders in BFS. |
