Posts Tagged ‘images’
Book Bank
Saturday, September 24th, 2011
Understanding Bank Reconciliation
Bookkeeping is fundamental in running your business in an informed way. It is important that you have an organized, transparent and updated bookkeeping system in place. One of the ways to keep track of your company’s books is bank reconciliation.
What is bank reconciliation?
The procedure of comparing the account balance given by the bank with that of the company’s book of accounts and explaining any discrepancy is bank reconciliation. The discrepancy in the balances may be due to the different timing of registering the data in the bank’s books and in your company’s books. This discrepancy is normal and is rectified automatically within small time. However, sometimes the discrepancy is due to an error, which has to be rectified manually and to catch this error you need bank reconciliation. Companies generally do bank reconciliation at the end of each month.
Reasons for maintaining bank reconciliation
Regular monthly bank reconciliation keeps your company’s financial records clear and updated. You never build up an erroneous backlog. Also, you can understand your accounting status all the time. It is important that you have a prompt and reliable communication system with the bank so that you keep your records accurate.
Bank Reconciliation Statement
It is better to prepare a bank reconciliation statement by yourself so that you are able to figure out the causes of discrepancy.
Structure: The statement is divided into two sections. The right section reflects your bookkeeping for bank transactions and the left side reflects the bank’s records for your account with them.
Heading: The heading of the statement will have the bank’s complete name with the date of reconciliation.
Items: The first item of the statement is your opening balance just before the reconciliation. Check each item of the statement further for the following. If the transaction is missing from you our company’s account and it is on the bank’s record then you need to enter it in your books. If the bank section has missed it then enter it under their section. If the missing transaction belongs to the bank such as any fees deductions or interest credits, then it is an error at the bank’s end and it will rectify the error.
Adjustments: Once the reasons for the discrepancy have been figured out then you should include the missing information in journal entries.
Items of Bank’s Statement
Credit: Banks may credit some interest periodically into your account as applicable on the account balance.
Debit: These will be any of the bank charges on your account as applicable.
Erroneous credit: Any incorrectly placed credit in your account is booked under this head. Sometimes, the bank makes a deposit in the wrong account.
Items on Your Account Books
Unpresented check: Your Company’s books should record any checks issue immediately at the time of issue. The bank will, however, record it when the check is presented to it.
Software for bank reconciliation
There is a lot of bank reconciliation software readily available in the market. This software is compatible with all the latest accounting packages. The data is automatically imported, checked and reported through the software making your job easier.
About the Author
David Gass is President of Business Credit Services, Inc. His company publishes a
free weekly e-newsletter
on Small Business Consulting at their web site http://www.smallbusinessconsulting.com
The Book Bank Foundation & Raymond Felton present: A Ray of Hope
|
|
Hot Wheels Twist & Turn Gumball Dispenser & Bank $8.00 Hot wheels twist and turn gumball dispenser and bank…. |
|
|
Bank Interior (engraving) (b/w photo) by Jost Amman – Mug – Standard Size $14.50 This mug is created using the finest dye sublimation techniques and creates a stunning dishwasher safe finish. Great as a gift, or for promotional items. Each of our mugs come individually boxed for protection in transit…. |
|
|
Bank Interior (engraving) (b/w photo) by.. – 3×2 inch Fridge Magnet – large magnetic button – Magnet $4.99 Rectangular wrap-around refrigerator magnet and a glossy mylar cover.Large 2×3 inch rectangle fridge magnet or ‘buttons’ as they are sometimes known in the USA.Crop shown is automated for display purposes only. All magnets are hand finished and the best most appropriate crop will always be selected to best show the full image. Therefore, actual product may vary slightly from crop shown – this can … |
|
|
The Foundation $8.94 No Description Available.Genre: Country & WesternMedia Format: Compact DiskRating: Release Date: 18-NOV-2008… |
|
|
Sgt. Pepper’s Lonely Hearts Club Band $8.87 BEATLES THE SGT. PEPPERS LONELY HEARTS CLUB BAND (ED… |
|
|
The Indian in the Cupboard $4.53 Young Hal Scardino stars as a sensitive boy who discovers a way to bring plastic toys to life in a locked cupboard. One of those toys, a 19th-century Iroquois warrior (played by actor Litefoot), was actually a real warrior now only several inches tall. A bond eventually develops between boy and warrior, and a six-shooting toy cowboy (David Keith). As with E.T. the Extra-Terrestrial, The Indian i… |
|
|
Bank $10.49 This book is in New – Excellent condition |
|
|
The bank book $6.35 This book is in Good Used condition |
|
|
The Penny Bank Book $37.46 This book is in New – Excellent condition |
|
|
Bank Management $76.12 Closely examine the impact of today’s changing, competitive environment on commercial banks and banking services, as well as the entire financial services industry, with Koch/MacDonald’s BANK MANAGEMENT, 7E. This new edition reflects the latest changes and developments, from complete regulatory updates to details of the many programs evolving amidst today’s financial crises. The book’s unique approach to understanding bank management focuses on decision-making in today’s financial world. Whether you are a practicing or future professional, the book clearly demonstrates how certain factors influence credit, investment, funding, and pricing decisions. The book’s solid framework provides an appreciation and understanding of the trade-offs between return and risk. You gain a better understanding of the most important issues confronting financial and banking managers today as the book discusses basic financial models used to formulate decisions and analyzes the strengths and weaknesses of data analysis. With the help of this latest edition, you develop the logical thought processes needed to achieve strong financial and management results. |
