Monthly Bank Statement Reconcilliation
It is necessary in order to reconcile entries in your cash book with your bank statement. One way to do it is by noting the bank balance according to the bank on a certain date (as shown on the bank statement).
Then subtract the value of all cheques issued but not yet appearing on the bank statement. Then add the total of all deposits made but not yet appearing on the statement. If the bank has made errors, these too are accounted for in the Reconciliation Statment. The final total should agree with your own cashbook total for cash at bank.
The reconciliation acts as (1) an external verification/confirmation of internal financial records, and (2) a check on the accuracy of the bank.
Having completed the Reconciliation, if any transactions seem to be unusually outstanding, or if there is a discrepancy, the matter should be resolved as soon as possible.
Benefits: If you find yourself spending lots of time every month reconciling your bank statement and still aren't able to nail it down to the penny, our specially designed monthly bank reconciliation form will be able to help you. It can help make the process far less painful and much more accurate, and will even do some of the clerical work for you. Just plug in the account balance shown on your bank statement, your deposits in transit, your outstanding checks, and your account balance according to your books in the spaces provided. The reconciliation will add up all the amounts, and immediately tell you if your books agree with your bank balance. If they don't agree, you can get right to the business of finding your errors (sorry, the spreadsheet can't do that for you)!
NYC-Bookkeeping.com © 2009 | Privacy Policy | Site: Brainstorm - NYC Website Design Services
