Bank Reconciliation Process

3/5/2016

Adjusting the Balance Per Bank

The first step of the bank reconciliation process is to adjust the "balance on the bank statement" to the true, adjusted, or corrected balance. Below is the formula for obtaining the balance.

What are deposits in transit? Those are the amounts already received and recorded by the company, but are not yet recorded by the bank. Your outstanding checks are identified as the checks written and recorded in the company's cash account but NOT yet cleared the bank - this delay can be related to timing of when the check was presented to your bank for payment and the time of occurrence. Instances such as theses will be potential adjustments to an Accountants monthly bank reconciliation.

Continue to follow the blog for more information regarding bank reconciliations.

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