How To Do A Bank Reconciliation (EASY WAY)

Join me in this episode of Accounting Basics for Beginners as I show you how to do a Bank Reconciliation from scratch.

In this Bank Reconciliation tutorial, you'll hear the definitions of Bank Statement and Cash Book and learn why the following situations can cause differences between these two reports...

▪ Omissions
▪ Timing Differences
▪ Errors

You'll then find out how the Bank Rec is useful in terms of calculating the 'True Cash Value' of a business. And finally, I'll show you how to prepare the Bank Reconciliation using 7 steps...

The techniques that you'll discover in this Bank Rec tutorial can be applied in your own work to easily reconcile the Bank Statement to the Cash Book.

⏱️TIMESTAMPS
00:00 - Intro
00:58 - Bank Statement Definition
01:14 - Cash Book Definition
01:52 - Why do the Bank Statement and Cash Book disagree?
03:38 - What is a Bank Reconciliation?
04:03 - Why is a Bank Reconciliation necessary?
04:23 - When are Bank Reconciliations done?
05:29 - Step 1 - Get copies of the Bank Statement and Cash Book
06:20 - Step 2 - Bank Reconciliation template
07:48 - Step 3 - Tick all matching transactions
08:28 - Step 4 - Calculate adjusted Bank Statement balance
10:28 - Step 5 - Calculate adjusted Cash Book balance
13:07 - Step 6 - Check that the adjusted totals match
13:43 - Step 7 - Prepare the necessary Journal Entries

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#accounting #accountingbasics #accountingstuff

[AccountingStuff]

The bank reconciliation can be a real headache if it get's left alone for too long... and most of us probably don't do it regularly enough. How often do you do you reconcile the Bank Statement?

[tbedre]

This guy must of knew they were people who can’t afford the proper education and would eventually find his content on YouTube. Thank you 🙏🏾 Your changing lives

[nickazrael]

Anybody watching this night before test?

[ashleyramroop]

When he's better than your normal
Accounting professor....😬

[tineshaw]

I graduated 5 years ago and this always confused me. You explained it in 17 minutes and it makes perfect sense.

[gracea]

so much helpful than my professors. My god, spend so much when we have youtube university

[PS-srmg]

I cannot tell you just how grateful I am for this tutorial! I've got an accounting test on Thursday and I was extremely confused with the notes given to us, so this was a real life saver! Thank you!

[mandisigladile]

I am watching this tutorial from South Africa preparing for an exam I'm having in about 10 hours time from now on. This is extremely helpful. It has helped given a framework of the procedural approach to Bank reconciliation.

Thanks buddy!

[davidhunter]

I'm due to sit my financial accounting exam next tuesday, and this is the most clear and easy to understand explanation of how to do Bank Rec's that I've ever found. Thanks very much

[ksenijagorodniuk]

Love it! Finally YouTube has videos that are REALLY HELPFUL and EASY to understand. No headache after watching :)..haha.
Thank you for putting time and effort into your videos. They are amazing ^-^

[urvifood]

I am so amazed at how incredible your videos are. The aesthetic of the videos are absolutely amazing. The aesthetic really reflects a clean and easy tone which adds to your simplified style of teaching. Your channel is absolutely incredible. Like the time stamps on your description, smooth and clean layout, the step by step explanation, and clear voice like this is qualityyyy. Thank you so much for your videos I absolutely love them.

[jasonr]

I just started my first accounting job recently and I’ve been doing fine with everything except for the bank reconciliations. It’s my biggest weakness right now. My company has a ton of checks, eft, and wire transfer activity, and I’ve been getting migraines trying to reconcile my accounts on time monthly. I feel more confident when i come into work next week after watching your video tutorial. Thank you for making this! I hope to be as good as you.

[anthonyramjattan]

As someone who graduated with Finance and landed a role in accounting, this daunting task of bank rec's became so much more clearer thanks to you!! Keep it up, subscribed!

[Bigmoneycwu]

Youtube should have a tip jar. You're single-handledly getting me through accounting brother! Thank you for everything you do.

[kanikamaheshwari]

I don't think there could be any other channel on this planet than you!!
As they say you need to be the best in your profession to get there, and trust me you are the epitome of the best out there in terms of explaining in the simplest possible way. I think even non-accounting or finance background people can learn it via your channel. I just regret paying school fees to crappy teachers who made things
Thanks a ton :)

[mohsinbaig]

James 15 minutes video = Sir 1.5 hours lecture.
So, James's video >>> Sir's lecture. Thanks for this amazing content.

[skippy]

Honestly, James, I would get nowhere in class without you! Thanks a bunch, man!

[nyamnyam]

man i am so glad i stumbled upon your channel.

i'll be starting my internship next month and the company mentioned that they would probably let me do bank recon, among others. i became so anxious cause i remembered how i sucked at this so bad back when i was a first year student then i discovered this video and you explained it so so well. i was also having trouble picturing my future in the accounting field, doubting myself here and there, but i scrolled through your other videos and somehow i felt a sense of peace if you may and a feeling of wanting to do my absolute best.

anyway this channel is a blessing and i hope you know that you help your viewers in more ways than one. thank you so much once again james! best believe i'll be binge watching your videos for the next few days 😅

[barbarapalmer]

My kids started a Civil Works Construction Company in March 2020. Three days later covid19 restrictions hit and they couldn't afford a bookkeeper so at 63years old I took on that role. We survived first 2 years where Tax Returns were sensational. That's because they basically used their own capital and the Government support Jobkeeper packages to survive. Things have really picked up now and cash is increasingly flowing in and out all the time so I needed to understand how to create the Cashbook and Reconciliation Statements... it's been a nightmare. Your video has changed that for me. Thanks James, your tutorial is so easy (and fun???) to follow. I'm sure I'll nail this now. I'm going to go through the rest of your videos to learn how to streamline all our account-keeping books more effectively and accurately. Thanks so much you're amazing. Who said an old dog can't learn new tricks. Lol🤓🤣

[iamazalea]

Watching this to refresh my mind since it's almost two years since I last take my accounting class and now I have accounting class (again, grrr). This is so helpful!! Very easy to find and not boring. Thanks a lot!! 💓💓