In order to verify the accuracy of the accounting records concerning its cash accounts a person would use a process of bank reconciliation. The definition of bank reconciliation is - " a procedure used to determine the correct cash balance in an account by comparing the activity recorded in the account with the activity recorded on the bank statement". The statement received by the bank will have details on deposits, checks that were paid by the bank, earned interests, any fees/service charges applied, NSF, credit or debit memos. The bank statement is compared with the company's activity records and any discrepancies should be noted. These differences are referred to as reconciliation items. The differences are fall into three groups: 1. timing differences (deposit in transit and outstanding checks) 2. omissions (interest by the bank and not received yet by the company) 3. errors by either party. QuickBooks uses the Reconcile windows to accomplish these tasks. This is done in two steps. The first step is to make sure the cash records agree with the banks record. The second step is that any missing transactions in the companies records that are discovered during this reconciliation process can be recorded at this time. QuickBooks uses two windows to accomplish the reconciliation process. The two parts of the reconcile window are 1. Begin reconciliation window (select the bank account to reconcile, add transactions and enter the bank statement balance. 2. The second window used is called Reconcile window (use to indicate which transactions recorded to the company's books have cleared the bank. If the checking account has a discrepancy a person could use the Missing checks repot to determine where the error might have occurred.
In order to verify the accuracy of the accounting records concerning its cash accounts a person would use a process of bank reconciliation. The definition of bank reconciliation is - " a procedure used to determine the correct cash balance in an account by comparing the activity recorded in the account with the activity recorded on the bank statement". The statement received by the bank will have details on deposits, checks that were paid by the bank, earned interests, any fees/service charges applied, NSF, credit or debit memos. The bank statement is compared with the company's activity records and any discrepancies should be noted. These differences are referred to as reconciliation items. The differences are fall into three groups: 1. timing differences (deposit in transit and outstanding checks) 2. omissions (interest by the bank and not received yet by the company) 3. errors by either party. QuickBooks uses the Reconcile windows to accomplish these tasks. This is done in two steps. The first step is to make sure the cash records agree with the banks record. The second step is that any missing transactions in the companies records that are discovered during this reconciliation process can be recorded at this time. QuickBooks uses two windows to accomplish the reconciliation process. The two parts of the reconcile window are 1. Begin reconciliation window (select the bank account to reconcile, add transactions and enter the bank statement balance. 2. The second window used is called Reconcile window (use to indicate which transactions recorded to the company's books have cleared the bank.
If the checking account has a discrepancy a person could use the Missing checks repot to determine where the error might have occurred.
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