Bank Reconciliation

Question 1

What are we doing with a bank reconciliation?

Answer 1

Create a list of what’s different between accounting system vs. bank

Question 2

Why use a computer program for Bank Reconciliation?

Answer 2

• Dramatically saves time (cuts it in half vs people using Excel)
• Uses “guard rails” to keep you in balance, so you don’t have to start over
• Can be performed by less experienced personnel
• Safer for preparing for an audit

Question 3

What is the importance of Bank reconciliation?

Answer 3

• Know the actual cash balance for Gov
• See when a written check was cleared for a vendor
• Verifies which customers have paid us (accounts payable0
• Audi: Provides a strong set of documentation to auditors

Question 4

Best practices for reconciliation?

Answer 4

• Reconcile early and often
• Use consolidated cash
• Separate duties: Identifying the actual cash balance for Gov utilization.