How many days after a month ends should the bank reconciliation be done?
The bank reconciliation should be done within a few days after the month ends. The reasons include 1) making certain that the company’s Cash account has the correct balance, and 2) making sure that the financial statements for the month include all of the company’s transactions. At the latest, the bank reconciliation should be done prior to closing the books for the month.
The bank reconciliation might reveal that some revenues and/or receipts were electronically deposited into the bank account but were not yet recorded in the accounting records. Likewise, there might be some expenses and/or payments that were deducted electronically from the bank account, but were not yet entered into the company’s accounts. Further, the bank reconciliation might reveal some errors in the transactions already recorded in the company’s general ledger.
To save time and to improve internal control, have the bank reconciliation be performed by someone other than the person writing the checks and/or recording amounts in the general ledger.
Learn more about Bank Reconciliation.
AccountingCoach.com also has three FREE inteactive Crossword Puzzles on this topic.
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12 Responses to “How many days after a month ends should the bank reconciliation be done?”
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Please explain the difference between contra accounts and adjunct accounts.
Please explain the difference between financial plan and budget
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Pls, I want 2 ask aquestion. If a building of $50000 is inherited and introduced to a biz, how will all the transactions go
I am very happy with your explanation about all aspects of accounting thanks a lot, i am improving my accounting knowlodge in English because i have studied in Portuguese
Please explain the difference between contra accounts and adjunct accounts.
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i want to know the drawbacks of the bank statement to the accounting cycle
Please see the question “What is the difference between an adjunct account and a contra account?” found here:
http://blog.accountingcoach.com/adjunct-account-contra-account/
Hi, I m very weak in accounts but i m working in International Company so i want to improve my accounts concept day by day specially about journal entries Now i m in Treasury department reply me in basic details of accounts I m sorry if u hurt..
pls. give somes example of bank reconciliation problem w/solution tnx
You can visit our Bank Reconciliation Drills for practice problems. Our Exams also have 40 questions on Bank Reconciliation and Petty Cash.