Recording your uncleared checks and uncleared deposits are extremely important because it enables you to reconcile your transactions between your accounting system and your bank statement.

For example, if I wrote a check for $15,000 to the auction before my accounting start date, but they didn't deposit it until after, needs to know who that check was to, when it was written, and for how much it was written because even though I wrote it 2 months ago, it only just got deposited. If I don't record it then I won't be able to reconcile my bank transactions.

In this case, I'd record that information on the Uncleared Transactions tab and it will automatically make transactions in my accounts.

Note: even if the transaction has already cleared, if it was open as of the start date it must be recorded as an uncleared transaction.

Did this answer your question?