What if I can't get my figures to balance ?
Steps To Take
- Check your addition and subtraction if your are using a manual checkbook or register
- Check the accuracy of the check amounts recorded. Make sure that the actual check amounts as recorded by the bank agree with the actual check and the same amounts that were recorded in your checkbook or register. We're all human and sometimes make mistakes. It's easy to record an actual check amount for $9009.00 as $9090.00. This is what is known as a transposition error.
- Likewise, check and compare your actual deposit slip amounts with the amounts recorded by the bank. It's not that hard, to total up a bunch of checks included in a deposit slip and arrive at a wrong total amount. The bank usually sends you a correction notice when they run across these type of errors.
- Make sure that all outstanding checks have been listed. Note, this list not only includes check written in the current period that have not been processed by the bank, but also any checks written in prior months that have still not been processed by the bank. Refer back to your prior month's reconciliation and double check that all the checks listed as outstanding have actually been processed by the bank. Make sure that any checks in the prior month's reconciliation that have still not cleared are listed in your current month's reconciliation as still outstanding.
- Make sure you have listed all the deposits that were recorded in your checkbook or register and not yet processed and recorded by your bank as Deposits In Transit. Double check that your Deposits In Transit from the prior month and listed o your prior month's bank reconciliation have now been processed and recorded by your bank.
- Make sure that you have recorded in your Checkbook or Register all your Credit Card Slip Sales from your customers that are deposited directly to your bank and any other direct deposits that are made to your bank account.
- Check and see that all bank charges, credit card processing fees, and pre authorized checks (debit memos) have all been recorded in your checkbook or register.
- Review the prior month's reconciliation and make sure that all reconciling items, corrections, and adjustments to your checkbook or register have been recorded.
If all else fails yell HELP and I'll come running. Seriously, don't be afraid to ask your banker, co-worker, or accountant for assistance if you need it.
What's next ?
Bank Reconciliation Exercise