Glancing at the bank statement, you discover that you made a mistake when you entered a transaction in a register you entered the wrong amount or check number. Or perhaps you forgot to enter a transaction altogether. It happens. Cash withdrawals from ATM machines, which usually are made on the spur of the moment, often fail to get recorded in account registers. Here is how to fix a mistake in a transaction:

1. Click the transaction that needs correcting. If you need to enter a brand-new transaction, go straight to Step 2.

2. Select the Show Transaction Forms check box.

3. Fix the error or enter a new transaction:

• New transaction: Click the New button and enter the transaction.

• Repair an error: Enter the correct amount, check number, date, or whatever needs correcting.

4. Click the Enter button.

Help! The Darn Thing Won’t Reconcile!

Not being able to reconcile a bank account is frustrating. You pore over the bank statement. You examine checks and ATM slips. You gnash your teeth and pull your hair, but still the thing won’t reconcile. No matter how hard you try, the Difference figure that lists the difference between the cleared amount and the statement amount cannot be brought to 0.00. To help you get out of the jam you’re in, Money offers techniques for recognizing and fixing reconciliation problems. And Money also has a gizmo called AutoReconcile (which gets its own section later on in this article) that may or may not be able to help you reconcile your bank account.

A checklist of things to do if you can’t reconcile

If an account won’t balance, a number of different things can be wrong. The following sections explain how to recognize and fix reconciliation problems.

 -  A transaction was not entered: The primary reason that accounts don’t reconcile is because a transaction that is listed on the bank statement has not been entered in the register. ATM withdrawals, for example, are easy to forget and often do not get entered in account registers. Remedy: Look for a transaction on the bank statement that is equal to the Difference amount on the Balance Account window. If the Difference amount is $35.20, chances are you forgot to record a $35.20 transaction in the register. Look for a $35.20 transaction on the bank statement and, if necessary, click the Show Transaction Forms check box to display a form and enter the transaction. Be sure to enter the date correctly. If the difference is $20.00, $40.00, or another round number, chances are you forgot to enter an ATM withdrawal.

 -  An amount in the register is incorrect: Another reason accounts don’t reconcile is that amounts were entered incorrectly in the register. This problem is a sticky one and is hard to track down. Look for transposed numbers and numbers entered backward. For example, $32.41 and $34.21 look alike at a glance, but there is a difference of $1.80 between the numbers. Here’s an old accountant’s trick: If the difference between what you have and what you should have is evenly divisible by 9, you probably transposed a number. Remedy: Click the transaction, select the Show Transaction Forms check box, and change the amount on a transaction form.

 -  A transaction was entered twice: Look for duplicate transactions in the register to make sure that no transaction was entered twice. Remedy: Delete one of the transactions by pressing Ctrl+D or rightclicking it and choosing Delete from the shortcut menu.

 -  A check was entered as a deposit or vice versa: Making an error like this is easy. Fortunately, detecting it is easy, too. Remedy: Clear your checks and withdrawals first; then clear your deposits. You’ll notice during this process whether a deposit, check, or withdrawal is missing. Click the transaction and then click the Show Transaction Forms check box. On the transaction form, edit the transaction to make it a deposit or a withdrawal. If you feel comfortable doing so, you can also right-click the transaction and choose Change Transaction Type To Withdrawal or Change Transaction Type To Deposit.

 -  The Ending (Statement) balance is incorrect: If you enter the Ending balance incorrectly in the Balance dialog box, you cannot reconcile an account no matter how hard you try. Remedy: Return to the Balance dialog box and enter a correct Ending Balance figure. To do so, click the Postpone button to return to the Accounts window, click the Balance This Account button, and then click the Next button. You see the Balance dialog box again, where you can enter a correct Ending balance this time. Click Next again to return to the Balance Account window.

 -  A service charge or interest earned is incorrect: Besides entering the ending balance incorrectly, you may have entered an incorrect amount in the Service Charge or Interest Earned text box in the Balance dialog box. Compare the interest and service charges on your statement to the ones in the Balance Account window to see whether an amount is incorrect. Remedy: Click the service charge or interest entry in the Balance Account window, select the Show Transaction Forms check box, and enter a correct figure on the transaction form.

 -  The bank statement was not flipped over: Don’t forget to turn over the bank statement and examine the transactions listed on the other side of the page. Remedy: Turn the page, note the transactions, and click to put a check mark next to them.

“AutoReconciling” an account

If all else fails, you can try Money’s AutoReconcile gizmo to find out why the account won’t balance. This contraption scours the register for transactions that it thinks were entered incorrectly and gives you the chance to enter them correctly so that the account can be reconciled. Follow these steps to try it:

1. Click the Next button. Although the account isn’t balanced, click the Next button as though it is in balance. You see the Balance dialog box.

2. Select the second option button, Use AutoReconcile to Help Find the Error. If you’re in luck and Money can find the error, the Possible Error dialog box appears.

3. Read the description of the error and click Yes or No to change the transaction in question or to let it stand. Forcing an account to balance

If, despite your detective work, you can’t find the problem that keeps your account from balancing, you can force the account to balance. Forcing an account to balance means to enter what accountants call an “adjustment transaction” a fictitious transaction, a little white lie that makes the numbers add up. If the difference between what your statement says and what the Balance Account window says is just a few pennies, enter the adjustment transaction and spare yourself the headache of looking for the error. A few pennies here and there never hurt anybody. The words “Account Adjustment” appear in the register on the Payee line when you force an adjustment transaction. Money gives you the chance to categorize the transaction on your own. After you have torn out your hair trying to discover why an account won’t balance, follow these steps to force an adjustment transaction:

1. Click the Next button in the Balance Account window. Click the Next button even though the account has not been reconciled. The Balance dialog box appears. It tells you that the account isn’t in balance and asks what you want to do about it.

2. Select the Automatically Adjust the Account Balance option button.

3. Choose a category from the Category drop-down list.

4. Click OK.