If you’re finding withdrawals that aren’t listed on the bank statement, do some investigation. If it’s a missing check withdrawal, it’s possible that it hasn’t been cashed yet or wasn’t cashed by the statement deadline. Consider performing this monthly task … Continue reading →

One is making a note in your cash book (faster to do, but less detailed), and the other is to prepare a bank reconciliation statement (takes longer, but more detailed). Once you’ve figured out the reasons why your bank statement … Continue reading →

Banks can also make errors, and if the mistake can’t be identified, contact the bank. Keeping track of the entire reconciliation process is crucial for reporting https://www.kelleysbookkeeping.com/what-is-the-purpose-of-contra/ errors and corrections to the management team later. Documentation also helps non-reconciliation employees … Continue reading →

That leaves less cash available to meet financial obligations or reinvest in the business. But if she does five inventory turns a year, she will only have $100,000 in cash tied up in inventory at a given time, freeing up … Continue reading →