10 Simple Steps for a Complete Bank reconciliation procedures

To do a bank reconciliation you would match the cash balances on the #balancesheet to the corresponding amount on your #bankstatement, determining the differences between the two in order to make changes to the accounting records, resolve any discrepancies and identify fraudulent transactions.

Bank Reconciliation: A Step-by-Step Guide (EASY WAY)

You receive a bank statement, typically at the end of each month, from the bank. The statement itemizes the cash and other deposits made into the checking #account of the business. The statement also includes bank charges such as for account servicing fees.

Once you’ve received it, follow these steps to reconcile a bank statement:

1. Ensure that all bank statements for each bank account are at hand before attempting the reconciliations.
2. Details from the source documents are processed correctly in the cash book to minimize time spent on the bank reconciliation.
3. References on the Cash book must be consistent with those that appear on the source documents.
4. Journalize bank debits/credits in the same month they occur.
5. Review outstanding cheques older than three months.
6. Use reference appearing on the bank statement to cross-reference outstanding items on the reconciliation.
7. Investigate long standing items on the reconciliation and if necessary write back items that are not likely to be cleared.
8. Once the reconciliations are complete, they should be signed off at least by the #Accountant, paying particular attention to long standing deposits and cheques if any.
9. Bank statements must be filed together with the bank reconciliations.
10. Bank reconciliations should be written in ink and not pencil to minimize erasure.

Our #accounting services are sure to remove all the hurdles that could affect your business growth. We have well-experienced #professionals for bank reconciliation accounting & #cardreconciliation outsourcing services.

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