What are the main steps for a reconciliation of Banks/Vendors/Customers?

Reconciliation required two statement for comparison balance at each one, difference to be stated (Record mistake, omission, non recognition).

reconciliation to begin with eliminate common entries. & non eliminated item to be stated with the reason behind it.

 

• Print both statements.
• Highlight the matching figures.
• At the end you will have the unhighlighted figures which are not showing ( your statement or Bank/Vender/Customer statement ).
• Check those transactions and you will have the reconciled statement.

1. Previous Reconciliation or Correct Opening Balance

2. Bank/Vendors/Customers Statement 

3. Our Statement.

 

Match the figures, and sort the unmatched figures. 

Clear it with issuing Debit/Credit Notes if the reason is acceptable. 

For Bank, Contact your Service Manager by Letter in case of any Debits or Credits Missed Out

Bank reconciliation, -We check items whuch are in the cash book but not on the bank statement -Check items which are pn the bank statement but not in the cash book -In general we chck differences between bakances in the records and documdnts

the First Step Are Find a point between the reports Or SOA To Make Reconciliation (invoices Number or etc. ) And Notes the Dates And Amounts 

If You Use Excel That VLOOKUP will Be Help you .

Frst of all we need to ensure the accurateness of the opening balances this is easy and less hectic for verification of the bank balance as the statement is easily available. We can use that to track out the differences, mostly they occur because of timing that is cheques deposited by us but not cleared in bank or direct deposits by customer, that has not been recorded in our ledger.  

While, for the customers and vendors it may be made difficult for arising of the disputes where, customer may not recognise an invoice. In that case the proving of the goods being  can be done via production of D.C. or the signed by customer copy of the invoice. 

As for the vendors, well same is the case except that the supplier might claim non-receipt against goods that he sent. In such a scenario, cheque issued and its clearance from the bank may be produced as a proof, in the final round, of-course.

Anyways, differences between customer and vendor ledger may be resolved by issuance of credit and debit note.

Step 1: Enter dates and balances in the bank reconciliation template.

Enter the bank statement date and ending bank balance along with the ending book balance.

Step 2: Enter all outstanding checks.

Enter checks that have been written and recorded but did not clear your bank account.The easiest way to identify your outstanding checks is to look at the check sequence summary on the bank statement to see which check numbers may have been skippe.

Step 3: Enter any outstanding deposits in the designated areas.

Normally, you would not record cash deposits in your accounting system unless they have been deposited in the bank.

However, if you did record a deposit on your accounting books that you have not yet taken to the bank, you will need to account for that timing variance.

Step 4: Enter any other outstanding adjustments.

These adjustments may include any accounting entries that are recorded in your accounting records in the cash account that are not reflected on the bank statemen.

Step 5: Balance.

The bank reconciliation template we have included in this blog is designed to balance all of the outstanding checks, deposits, and adjustments.

 

 

1. Previous Reconciliation or Correct Opening Balance

2. Bank/Vendors/Customers Statement 

3. Our Statement.

For any organisation - small, medium or big enterprises , reconciliation or evaluation of its Banks , Vendors & Customers is vital and crucial . Without proper reconciliation a business cannot run & flourish as all the 3 - Banks, Vendors and Customers are directly related to the growth of the organisation .

Thanks for invitation.

Agree with our colleagues replies, which I do believe are covering the issue.

First of All, we need all the relevant Statements from Banks/Vendors/Customers and our bookkeeping statements in order to prepare a true reconciliation report .