Accounting

We answer your accounting questions.

Over 500 questions have been answered on our accounting blog. Click here to suggest a question.



February 8, 2008

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 interactive Crossword Puzzles on this topic.

Related Questions



Comments

17 Responses to “How many days after a month ends should the bank reconciliation be done?”

  1. Jock Stender on February 12th, 2008 11:48 pm

    Please explain the difference between contra accounts and adjunct accounts.

  2. Angela on February 15th, 2008 10:07 am

    Please explain the difference between financial plan and budget

  3. Jusu on March 18th, 2008 4:58 am

    Thanks a lot for answering my questions in a very positive maner.This alone shows that you are a credible institution.

  4. Mohammed on March 20th, 2008 7:07 am

    I really commend ur efforts, because even those who are not learned are benefiting from u. Good job keep it up!

  5. AFOLABI on March 26th, 2008 11:25 am

    Pls, I want 2 ask aquestion. If a building of $50000 is inherited and introduced to a biz, how will all the transactions go

  6. Naiene on March 27th, 2008 7:35 am

    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

  7. Rahul on April 5th, 2008 5:52 am

    Please explain the difference between contra accounts and adjunct accounts.

    pls send mail to on rahul.narute@gmail.com

  8. George on April 8th, 2008 7:01 am

    i want to know the drawbacks of the bank statement to the accounting cycle

  9. ACoach on April 21st, 2008 12:07 pm

    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/

  10. Adeeb on June 15th, 2008 5:17 am

    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..

  11. chu on July 2nd, 2008 12:25 am

    pls. give somes example of bank reconciliation problem w/solution tnx

  12. ACoach on July 2nd, 2008 11:08 am

    You can visit our Bank Reconciliation Drills for practice problems. Our Exams also have 40 questions on Bank Reconciliation and Petty Cash.

  13. MALIK BASHIR AHMED on July 27th, 2008 2:19 am

    i am much grateful to you sir,
    you are providing us what we can never dream.
    please send me some solved examples involving
    debtor and creditor control accounts also send me some tips so that i can prepare profit and loss account in anice way
    yours sincerely,

    malik bashir awan
    from village nowshehra district khushab
    pakistan

  14. Adeshina on September 24th, 2008 12:34 pm

    plz send me the formate of Bank Reconcilation statement.

  15. surinder sharma on September 26th, 2008 6:03 am

    what is petty cash

  16. Tili on December 4th, 2008 8:23 am

    Please send me bank reconciliation sheet format

  17. balu on September 2nd, 2009 6:22 am

    sir,
    pls expline the reason already i furnished reconcilation but the bank statement and our company bank ledger is not same the bank statement display 15000, but my company ledger display 45,000 so what is the problem what error plas expline ( in our account period) Aug to July. this problem start year begining aug statement.

Leave a Reply