It's nothing like having a plan for the unexpected." - Fontenot & Associates Solutions
The company's checking account balance in the bank records is a liability. Thus, in the bank's records, the company account has a credit balance. Since the bank statement is prepared from the bank's point of view, a credit memo entry on the bank statement indicates an increase (a credit) to the company's account. Likewise, a debit memo entry on the bank statement indicates a decrease (a debit) in the company's account.
Customers' checks returned for not sufficient funds, called NSF checks, are customer checks that were initially deposited but were not paid by customer's bank. How are you handling these special occurrences in review of your cash monthly? This incident would mean your bank account has more money than it should because your customer's check was returned by their bank.
A great reason to have support with your bookkeeping or a "Know How" guide to support your staff with the step by steps of how to analyze and make corrections to the financials when required.
Hello, I'm Terra the Founder and Marketing Director of Fontenot & Associates Solutions. Thank you for joining my Accounting world. Our blog's purpose is to teach with the determination of closing industry and accounting process gaps that knowingly exist with our uniquely designed detailed procedures and trainings.
My mission is to offer the best accounting results for all companies seeking to close their process gaps with actual solutions. With my Bachelors and Masters Degree in Accounting, I strive for continuous development and professional growth in this profession. My professional career has been in the Oil & Gas industry for nearly the past 10 years but my business focus is to support and train accounting professionals in all industries.