Post by prantogomes141 on Feb 13, 2024 23:17:49 GMT -6
To reconcile your business’s bank account, you need to review your account activity statements from your financial institution(s). You then need to compare the transactions reflected on your statements to your company’s internal accounting. You may need to make adjustments for payments that haven’t cleared yet, like uncashed checks, and interest earned on your account(s). Flag any transactions you don’t recognize for further review. Here are these steps in greater detail: 1. Review your account statement. The first thing to do when reconciling your accounts is to gather account statements for the periods and accounts you’re reconciling. Check each of the deposits, withdrawals and payments listed on each statement, taking note of any transactions you don’t recognize.
Also, note your ending balance so that you can check it against your own accounting later. Bottom Line Reviewing account statements is a business owner’s first chance to spot potentially fraudulent transactions and flag them for further review. 2. Compare statements Algeria Telemarketing Data to internal accounting records. Once you’ve reviewed the account activity recorded by your bank during the reconciliation period, compare the transactions listed on your statements to your own records. Make sure all transactions appear in your records and on your bank statements in the same amounts. Take special note of any that don’t match or that you don’t recognize. You may have a few transactions (both debits and credits) that don’t match up and require some adjustments. 3. Adjust for uncashed checks.
If you regularly send payments by check for your business, chances are you’ve sent a few checks that haven’t been cashed yet, so they won’t be reflected in your bank records. This means you may have recorded quite a few transactions that aren’t included in your bank statement or reflected in your final balance. In other words, your bank statement may show “available” funds that could disappear any day when payees cash your checks. For purposes of account reconciliation, you’ll need to adjust your records by adding back the value of any uncashed checks or subtracting the value of any deposits that haven’t cleared yet.
Also, note your ending balance so that you can check it against your own accounting later. Bottom Line Reviewing account statements is a business owner’s first chance to spot potentially fraudulent transactions and flag them for further review. 2. Compare statements Algeria Telemarketing Data to internal accounting records. Once you’ve reviewed the account activity recorded by your bank during the reconciliation period, compare the transactions listed on your statements to your own records. Make sure all transactions appear in your records and on your bank statements in the same amounts. Take special note of any that don’t match or that you don’t recognize. You may have a few transactions (both debits and credits) that don’t match up and require some adjustments. 3. Adjust for uncashed checks.
If you regularly send payments by check for your business, chances are you’ve sent a few checks that haven’t been cashed yet, so they won’t be reflected in your bank records. This means you may have recorded quite a few transactions that aren’t included in your bank statement or reflected in your final balance. In other words, your bank statement may show “available” funds that could disappear any day when payees cash your checks. For purposes of account reconciliation, you’ll need to adjust your records by adding back the value of any uncashed checks or subtracting the value of any deposits that haven’t cleared yet.