Importing data from Schwab- error in cash balance

[B Hunt]

I regularly import prices and transactions from a Schwab account and I have had to enter several adjusting transactions to correct the cash balance. All share number and price details are correct. The account is offshore and a number of stocks and funds reinvest dividends. Automatic deductions are taken before crediting dividends or reinvesting them. Could this be where the problem lies. Suggestions? I am using 2014 version -haven't upgraded to the 2016 version yet.

[Mark]

Hi B Hunt,

It is hard to say without looking through the transactions. Cash is by far the most common problem area in reconciling accounts. I would suggest just getting it balanced at one point, and then if the next period is not balanced, look through transaction by transaction. For every transaction that uses/generates cash you should have a corresponding default cash account entry. It may be possible that for those reinvestments you describe, they initially deposit cash, and then take it back out later when re-purchasing more shares. You'll just have to look, and make sure everything is recorded correctly, and try to see where the source of the error is coming from. Another fairly common source of problems related to balancing cash can sometimes be trade date versus settlement date. If you happen to have a transaction near the statement date that has traded but not settled, they may report your cash balance not counting that transaction. For example, if you sold $1,000 worth of a stock on the statement date, Fund Manager would add that $1,000 to your cash as a corresponding default cash account transaction, but the broker may report $1,000 less in your cash, since it hasn't settled yet.

Another tool to help you find any missing default cash account entries is to use an "Investment Transaction" report and turn on the filter "Only Include Portfolio External Contributions/Withdrawals". If you didn't take any money out or make any deposits, this report should be blank. This will highlight any missing default cash account entries.

[B Hunt]

Thanks Mark, I will give it a closer look.

[plhfish]

I seem to have a similar issue. Balances were perfect when there was no trading. I just did a few trades a few days ago which are not settled yet in one account (portfolio in fund manager) and the account balance is way off as the cash balance is wrong - several $10ks. I re-created the portfolio from scratch but same results.
For now I assume that Schwab's e-statement may not be correct until all trades are settled. I should know by 11/13 when all trades are fully settled. If there is still a discrepancy, I'll reconnect back on this topic